Full text of Commercial and Financial Chronicle : July 12, 1951, Vol. 174, No. 5028

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ESTABLISHED IS39

UNIVERSITY
Of
MICHIGAN

JUL 13 1951

New

Number 5028

Volume 174

EDITORIAL

The Market Outlook

We See Jt

As
It is clear

Price 40 Cents

York, N. Y., Thursday, July 12, 1951

Spain Highlights Difficulties
In U.S. Foreign Aid Policies

By ROBERT S. BYFIELD

Member, New York Stock Exchange

enough that Congress—and for that

By A. WILFRED MAY

Mr.

Byfieid, asserting it would be dangerous to assume
"peace would be bearish," says stocks have declined
primarily because of credit policies rather than because
of possible cessation of shooting war, and there are still
factors which point to resumption of hull market.

balking
at a good deal of the regulation that the Admin¬
istration would place upon us all. There is more
than a little hesitation about granting many of
the extraordinary powers sought by the Admin¬
istration.
There is little less than open revolt
among the farmers and throughout the rank and

that

file of the labor unions about

last winter.

trols.

textbook case of credit inflation en*,

matter, the people of this country—are

I

We

greets the eye
between

on

the

Administration and

intellectual cousins

and

on

the

one

more

as

to what their future course

To be sure,

we

of

the

White

times almost to be

House,

and they

yf}-- Continued

a

Korean

gerous

-

continued

from

Export -Import
of credits

$62 million of loans au¬

specifically, it is being said
which has been rewarded

that Italy,

By field

with 1% billions of ECA funds (93%
in

France, which has received 2%
lions of Marshall funds

to assume that "peace is bearish." We
peace in its accustomed sense will

Continued

page

(almost 90%

via

it

(90% in grants), has taken a full
Korea outbreak before agreeing to desist
goods to our common enemy, Red China.
country whose anti-Communism has never wav¬

cipient of 3 billions
year after the
from shipping

To

a

ered, it understandably can seem that continued generos¬
ity toward nations where the Communist vote remains

don't know
result from
on

A. Wilfred May

bil¬

grants), "folded behind the Maginot Line
without a fight, and has been blackmailing the U. S.
for anti-Communist bribery; and that England, the re¬
of

It would, in my opinion, be dan¬

whether

grants) after a billion dollars of
largesse, is a nation that

UNRRA

"fought America and killed her sol¬
diers
during the last war"; that

catastrophe.

21

on page

S.

Uncertainty is always a breeder of gloom in investment
circles and the turn of events in Korea in recent weeks

exception.

the

More

cease
Robert

no

the

under

Spring even after due notice from the money managers
in Washington that
a tightening up process was in
This is natural, as a certain momentum in the
buying of stocks is always generated in a bull market
and is not instantly reversible except in the event of a

has been

long

grants

thorized.

motion.

at

already

establishment

Bank's

the

sudden

of

surrounding

,

legion—are shouting from the

"■

without

Aid

Spain
5 and with the delays and conditions

bull market would have
been jeopardised by the falling bond
'
and preferred * stock quotations.
About the middle of
April U. S. Treasury 21/2S of 1966-1971 were 98; they
are lower today.
New York City 3s of 1980 were 111%
then and 107% now. Nevertheless, stocks rallied this

include

seem

or

the

with

trasted

withholding

had

With

fire,

Marshall

extended to other countries, are con¬

the medium of Regulation
(housing), Regulation W (consumer credit)
and the voluntary invest¬
ment committee has proven effective.

a

These further huge sums,

the

following

through

all the spokesmen and ventriloquists at the com¬
mand

the world.

X

ought to be.

the Administration—and

Administration has asked the Con¬
gress for $2,200,000,000 more in economic aid and $6,300,000,000 in military help for "free" nations throughout

changed-their direction.
Meanwhile the tightening of credits

many

reveal

Spain—Despatches appearing here

MADRID,

that the Washington

rise in industrial inventories
finally a jump in commodity

credit

aid policies.

for self-preservation; that

ijSof conditions and delay. * V

prices.
Unpegging of government
prices in early March provided
dramatic notice that the winds of

cohorts

hand, and

would
foregone
reversed
witnessed a

bond

others who hesitate to endow "the
Washington Government with further power
over the lives of us all.
It appears to us that a
sort of hesitant, fumbling process of reappraisal
of our entire present situation, and of what we
need to do in the premises, is under way through¬
out the length and breadth of the land. And it
must be said that the American people are not
getting a great deal of help from their leaders
in the task of thus coming to rational conclusions
great

Urges we pursue realistic ;
"For Duration" of Cold
War Crisis we waive usual economic, financial, political
j';
and ideological considerations, and extend our help to i
Spanish Government, as anti-Soviet asset, with minimum i
military

course

loans,
and

going

its

and

compassing an expansion of central
bank credit, monetization of Federal
debt through Federal Reserve Sys¬
tem bond purchases, growth of bank

than

now

XJritil about mid-February we

Spaniards' resentments against inconsis¬

tencies and discriminations in Western Powers' economic

That the bull market which began in June 1949

course, are

that there is rather
in this struggle that is

suspect

Mr. May cites

be slowed up or stopped in its tracks was a
conclusion when Federal Reserve policy was

price and wage con¬
dissatisfied about
prices, particularly food prices, but the degree
in which recent sales at reduced prices have
drawn buyers indicates very substantial buying
power in reserve, and "grass roots" demand for
more and more stringent controls does not appear
to have developed.
Consumers, of

Copy

a

Continued

6

on

page

27

\

IN THIS

PICTURES
the

of

Boston & Maine R. R.

Security

ISSUE—On pages 14 and 15 are pictures

Traders Association

pictures taken at the Spring

taken at Annual Outing

16 we present
of Los Angeles.

of Detroit and Michigan, and on page

Party of the Security Traders Association

State and

Prior Pfd.

Municipal
Boston & Maine R. R.

R.H. lohnson.S Co.

A, B, C» D, Pfds.

x

^

across

Established 1927
'

"...

••

.rV;/

INVESTMENT

duPont, Homsey & Co.
New

York

&

Boston

64 Wall

Street, New York 5

MILK STREET, BOSTON 9, MASS.
Tele. BS 424

Tel. HAncock 6-8200

120 BROADWAY,

NEW YORK 5, N. Y.

Tel. WOrth 2-0115

Tele. NY 1-315

Troy

upon request

THE NATIONAL CITY BANK

Albany

Buffalo

Providence

,

of Commerce

OF NEW YORK

Harrisburg
Scranton

'

Wilkes-Barre

Williamsport

Washington, D. C.

Head Office: Toronto
Bond Dept.

Teletype: NY 1-708

Allentown

New York Agency:
Seattle

4-

•

^

•

^JTTe

5

Underwriters
Distributors of

OF

BOSTON

and

or

OTIS & CO.

CANADIAN

:

Goodbody

&

Co.

(Incorporated)
Established

1899

CLEVELAND

Chicago

Angeles




-.v..

BONDS & STOCKS

Puget Sound
Power & Light

Co.

DEPARTMENT

New York

Denver
Toledo
Columbus
Buffalo

Chicago

Cincinnati

PoMixm Securities
(oRPORATIO/i

IRA HAUPT&CO.
Members New York Stock
and other

MEMBERS

40 Exchange Place,
115 BROADWAY
NEW

Exchange

Principal Exchanges

NEW YORK STOCK EXCH.

BOSTON

Los

OF THE CITY OF NEW YORK

,»

ESTABLISHED 1891

Devonshire Street

New York

NATIONAL BANK

Analysis upon request

Municipal

„

VANCIi, SANDERS & CO.
Ill

SECURITIES

THE CHASE

and

Corporate Securities
Prospectus from authorized dealers

...

Department

Los Angeles

CANADIAN

CANADIAN

Bond Fund

20 Exchange Pi.

Portland, Ore. San Francisco
••

?

Bond

The Canadian Bank

PHILADELPHIA

BOSTON

31

Monthly Commercial Letter

SECURITIES

Exchs.

Stock

Bonds

Canada

:

Bought—Sold—Quoted

Members

"

Branches

YORK

New York 5, N. Y«

105 W. ADAMS ST.

CHICAGO

111 Broadway,
WOrth 4-6000

Teletype NY 1-702-3

WHitehall 4-8161

Boston

N. Y. 6

Teletype NY 1-2708

Telephone l Enterprise

1820

2

The Commercial and Financial Chronicle

(150)

The

TRADING 1MARKETS IN

^reeii

Mountain Power, Com.

A continuous forum in which, each week,

they to be regarded,

are

New York Hanseatic

WASHINGTON

offer

as an

DODGE

1920

Redman's

stock

(Canada) Limited

Teletype NY 1-583

this

on

always shown
tally receptive

Specialists in

this

of

My

Because

score

ly

Members

traded
U.

Exchange
Exchange

194

S.

to

sure

looks like

into

tried

growth
of

Dan River Mills

b

Washington Dodge

some

the

wherein

Dominion

be

war

com¬

Reitman's

Such

the

investor
to

(speculator)

see

daily

a

in

the

1948

7% Preferred
Stubs

Preferred

with the
L.

Charles

in

Holton

bring extraordinary

of

of the largest producers of

one

the world. When you

radio

hear

television set:

or

on your

"This is

a

of

my

been

out

Reitman's

women's
37

JAMES J. LEFF & CO.

at

operates

the

end

chain

a

specialty

wear

of

last

Telephone BOwling Green 9-5920
Teletype NY 1-3018

I believe

stamp¬

division

cut,

is

its

television

tube

in

Springdale, Connecti¬
purchased from Remington-

Rand

early in 1950. This division

turns out high

Taxes

Per Share

quality rectangular
tubes, the smallest of

television

$255,768

$4.02

242,637

3.76

1948_

205,654

3.10

and 21 inch

1947

119,532

1.65

79,723
56,962
53,854

0.97

the largest its equipment can make
is a 32' inch tube. To quote from

0.54

Reeves:

44,745

0.39

tional

1949

1946

1945

AUDIO DEVICES

_

1943

which
,

0.60

a

33,393

0.29

make

25,264

0.07

part

lowing

.

years

ending

Jan.

the

of

com¬

small

a

ferred

sold

were

shares of
idend

at

last

year.

the

.

common.

the

An initial div¬

annual
on

Current

rate

the

of

$1

cornmoft

ratio

was

2:1

are

negative factors other

Reeves'

be

be

rough and tumble,
analyst accustomed to

with

U.

concerned

S.
at

companies
the

non¬

availability of

Tel.:

Nassau

Street, N.

DIgby 9-3430

Y.

5

Tele.: NY 1-2078




some data he has
become accustomed to reiy upon.

na¬

requirements

plant

shift

all

facilities

or

to

third

to

is

carry

in

two-thirds

is

Air-

owned

by

Reeves.

manufactures

for

trans¬

1

industrial

and

tele¬

vision use, and included among its

customers

RCA, Philco,
Bendix and the Signal Corps. Dur¬
ing World World II, Airdesign
many

are

made in addition to

equipment.

been able to produce good results

pany,
a

airborne

transformers,

instruments

balloons

and

Its

Teletype BS 259

:

WOrth

4-5000

*

a

spe¬

on

Boston Terminal 3Vsjs & 4s
United Gas

other

for

barrage

technical

associated

com¬

Tele-Video, has developed
high quality projection tele-

Common

Second, Reeves has collaborated
Remington-Rand
in
the

with

to

Reeves

hits the

when

market

Serial

color

television

Cinerama
recent

a

known

Members

is,

I

will

150

columnist,

the

movies'

know

it

yet.

which

the

owns

Cinerama.

Its

inevitable

it

Giant Portland Cement
Alan Wood Steel Co.

locked

trade

Central Electric & Gas

of

into

theatre

the

Pennsylvania Railroad

process

name

is

Purolator Products

as

adoption

American Marietta

of

made

'The

20

years

ago.

Singer'

some

Reeves Soundcraft
controls
some
30

the

up

locked

once

Houdry Process

Black, Sivalls & Bryson

filming,

A1 Jolson

company,
on

a

New York 7
Tel. NY 1-1932

tele¬

introduction

as

sound after

Jazz

is

movie

average

to

projection

Security Dealers Assn.

C.

not the movies

This

Y.

you

Sound." He

answer
or

,

quote

Robert
as

N.

Tel. DIgby 9-1550

article by the well

vision, whether

5%

Broadway

wrote, in part: "I have just looked

One

*

GEHSTEN & FKENKEL

commercially.

Ruark: "Inevitable

the

'

the ground
should come

by Reeves Soundcraft. To tell
what

at

Corp.

& Rights

on

Third, and with the greatest
possibility of a tremendous profit
potential, is Cinerama, 57% owned

from

*

Missouri Pacific R.R.

for color

cameras

floor, great benefits

Natalie

as-

has

and

process,

Kalmus

up* technicolor.

The

corporation is content to wait for
what

eventually will be—must
be—a billion dollar business."

Henry B.Warner & Co., Inc.
;

Members

Phila.-Balto.

Stock

Exchange

123 South Broad St., Phila. 9, Pa.
Phila. Telephone

KIngsley
New

York

Bell System Teletype

5-2700...

PH 771

City Tel.: BOwling Green 9-4818

Direct wire to

Ames Emerich,

Chicago

Late last year it became
known
that

a
group headed by announcer
Lowell
Thomas, and

BUY

producer

Mike

Todd,

spend

in

had

excess

contracted

of

a

(to

million dol¬

lars to put two films
this

on
Broadway
fall, using the Cinerama proc¬

ess,

U.

S.

SAVINGS

in which pictures Reeves will

have

BONDS

substantial share in the
It is expected that two
pic¬
using the Cinerama process
will hit
Broadway this fall.
a

gross.

tures

Its

is

:

Telephone

tape

actively traded

and

expansion minded.

division

Corporation, which in turn

However, at $23, Reitman's is
selling at only 5.7 times last year's
earnings.
The management has
continues

Y.

N.

Geo. & Fla. R.R. 6/46 Series A

Video

formers

can

148 State St., Boston 9, Mass.
Tel. CA. 7-0425

any

design, Inc., with its plant in Up¬
per
Darby, Pennsylvania. Airdesign is 100% owned by Tele-

Airdesign

may

that

Tubes, the layout of the plant and
the experience of the engineers
and operating personnel, suggest
the following products: (1) Cold

business

the

event

advisable to

the, poor market for the
stock: the women's specialty wear

working

the

Hazard

Tubes, (3) Magnitrons, (4) Geiger
Tubes and (5) Counter and Meas¬
uring Tubes."

14,400, and 60,000

the year-end.

and

President

in 1947, and which has

21,250

than

31

of

request

on

of

the

production,

Soundcraft

position

patents

Cathode Tubes, (2) Smaller Power

which

established

was

There

PETER MORGAN & CO.

Reeves

tubes, and at present

shares

of

been reduced to

at

fol-

is extremely compact. There
issue of $20 par pre¬

pany

is

31

of

cialized manufacture in the
mag¬
netic film
stripping field than

Corporation,

emergency

of

in

products other than Cathode Ray

year./ %/ <-va

The capitalization

Request

of film

pxiases

with emphasis on 19

"In

it

inches

17

now

—

report

1945

INC.

is

diameter

1942-

"■Fiscal

Because

experience

recording and

Second,

Net After

3950'1:

aluminum

demand.

the following table will speak for
itself as concerns growth:
*

St., New York 4

others

for

ings of all sorts, presently in great

of

stores—

year—situ¬

ated in Eastern Canada.

Incorporated

on

all

better

high quality recording blanks in

market.

no

Common

Analysis

market."

lions.

is

quotation

Analysis

,

equipment and in magnetic coat¬

Curb

best

never

5»/2s, 1954

GROWTH COMPANY

the

on

extensive

ings,

transcriptions, or master
discs for the radio, television and
record industries, in which Reeves

who

AEROVOX CORP.

and

the manufacture of film and

Exchange, and to transcription," there is an excelknowledge have -lent chance that what follows
quoted in a II. S. pa¬ comes from a Reeves transcrip¬
per.
On that Exchange, the mar¬ tion disc. Reeves' wholly-owned
ket is not good—usually only a subsidiary, Light Metals Corpora¬
couple of hundred shares trade a tion in Louisville, Ky., makes its
week and sometimes there is just aluminum
discs, and also turns

Central States Elec. (Va.)

amateur

largest

J

television. Being in

Montreal

AUDIODISCS

the

ture

all, let it be stated that

j

Reeves organization and personnel

Reeves' "bread and butter" divi¬

should stay away from Reitman's.
The shares are listed only on the

AND

for

developments

growth situation."

branch offices

de¬

which

the editors' permis¬
call it my "small, ob¬

us

Reeves'

with its mag¬
division,; Reeves has

tape

manufacture of

wants

TAPE

to

come

sions consist first of its manufac¬

let,

First of

liaiiiiiixiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiui

RECORDING

qua'iiiy sound.

ingn

sion

scure

Manufacturers of

netic

tape

a

could

our

normal illu¬

other American organization.
This business could run into mil¬

a

(Canada)

Direct wires to

outstanding.'First,

the

and

balance

Birmingham, Ala.
Mobile, Ala.

to 6 by 8

testing
laboratory
recently reported "is the equal in
all major
characteristics and is
superior in some respects to any

long time to
come,

Exchange

NY 1-1557

veloping projects which could be

try's

r";

for

Curb

St., New York 4, N. Y.

New Orleans, La. -

motion picture industry, magnetic
and optical tape that the coun¬

and

steady

to

developed

half.

e

York

New

service up to 250

can

wim

-Now

•

with

room

profits.

LD 33

MAGNETIC

a

nomer—with

Lynchburg, Va.

Broad

in

Limited. Calling it my "The Se¬
curity I Like Best" is a gross mis¬

Scott, Horner &.
Mason, Inc.

50

a

the

t

t

come

growth of the

times-earnings ratio.
is

winner in

continuing in-r

growth

and where general lack
of recognition creates a relatively

security

sure

prin¬

of

u

a

Canada

the

would

pounded with the

low

common

variety which
supply

company,

Moore Handley Hardware Co.

Reeves

should

find

to

years

situations within

—situations

American Furniture Co.

six

are

rea¬

for

is

-

can

"bread

have

I

son,

stock

Reeves'

which

of

most

this

For

MIBIIIIIIIIIIIIIIIIIIIIIIIIIIIfllllllllllllll

Trading Markets

clear picture up

a

mination and

cipal activities

are

the

ior

a

York Stock Exchange

Members

HAnover 2-0700

: persons

.

divided

be

priced
accordingly.

6%

Members New

25 Broad

feet

Corporation

Corporation

business

part

7%

Steiner, Rouse & Co!

Holton, Hull & Co., Los Angeles,
•Calif. (Page 2)

ing

peace econ¬

omy.

in

keep
with

pace

2-7815

or

and

Canada

BROADWAY, NEW YORK 5

Ss,

Reeves Souhdcraft Corporation —
Charles
L.
Holton, President,

vision system capable of project¬

potential growth stock which

—a

of

active¬

the

{Sfc ppNNELL & To.

Tele. LY 83

spe¬

a

Bought—Sold—Quoted

scarcity premium.

a

favorite

Soundcraft

the
so

or

-shares

REctor

want

the

in

Reeves Soundcraft

good Canadian

Tel.

people who

—

Washington Dodge, Partner,
Co., New York City.
(Page 2)

securi¬

ties.

Since 1917

Curb

to

Limited

(Canada)

Roberts &

President, Holton, Hull & Co.,
V
Los Angeles 14, Calif.
-

Cana¬

dian

Rights & Scrip

Stock

nor

CHARLES L. HOLTON

fundamen¬

a

to¬

wards

York

be,

to

recommending

ready reflect

-

attitude

Yotk

been

situation

side of the border

have

New

Alabama &

and

Selections*

industrials whereof the shares al¬

vestors

New

Thursday, July 12, 1951

Louisiana Securities

Canada, .apart
from
the myriad oil
and ;goid
shares, and apart from the large

Impressed by the dynamic eco¬
nomic possibilities of Canada, in¬

120

have

cial

Members

Broadway, New York 5

intended

not

are

sell the securities discussed.)

to

I

Partner, Roberts & Co., N. Y. City
of N. Y. Stock Exchange

Corporation
BArclay 7-5660

Their

Reitman's

(The articles contained in this forum

;

Fuget- Jound Power & Light Co,

Established

of experts

group

.

Week's

Participants

advisory field from all sections of the country
participate and give their reasons for favoring a particular security.

Ridge Mutual Fund, Inc.

120

different

a

This

Forum

.

in the investment and

:;ljnij;ed Gas, Rights & Common
Blue

Security I Like Best

.

Reeves
than

a

common,

thousand

with

more

stockholders,

is
over-the-counter.
capitalization is simple, with

2,500,000
ized and

shares

common
a

author¬

small, closely held

ferred issue of
$101,600
ing.
A
10-year,
5%

Over-the-Counter

Quotation Services

pre¬

outstand¬

note

for 38 Years

of

)

.

$252,000, sold in the spring of 1950,'
has

been

1951

to

reduced

less

than

acceptance by

as

of

June

1,

$12,000 through

the

holders of

National Quotation Bureau r
Incorporated

an
""

exchange offer for stock; and
small

remaining $70,000

conver-

46 Front Street
CHICAGO

Continued

on

page

Established 1913

a

5

New York 4, N.
SAN

Y.

FRANCISCO

Number 5028

Volume 174

.

.

.

The Commercial and Financial Chronicle

(151)

INDEX

Drugs On the Marhet
By IRA U. COBLEIGII

Article9 andNewe

"llCHTflSTfll

Page

Author of

Make

"How to

A

AND COMPANY

Spain Highlights Difficulties in U. §. Foreign Aid Policies

Killing in Wall Street and Keep It"

a

*—A.

capsule treatment of the highly therapeutic expansion of

pharmaceuticals; and the manner in which they have
contributed toward the sturdy financial health of their share¬

May

AQUASHOW

-.Cover

*

The Market Outlook—Robert S.

Byfieid-.L__^»-«--

——Cover

have

after

the Market—Ira U. Cobleigh

on

3

we

The

powerful crescendo motion
pharmaceutic chemical in¬
today

dustry
violence

drug

to

'

•

.

That

market."

phrase

expression "a

the

on

-

considerable

does

the old

to

mean a

cessful

of

deserve

to

sensationally
,4_% second

The Utility Outlook—Eric Etherington___

suc¬

short

a

if

a

u

k

r

e

Old-Age Benefits—Roger W.

tibiotic

give

away—a
a

The

glut.

lit

such

clamored-for
items

as

cillin,
mins.

were

ists

U.

Cobleigh

Another

thing, in addition to
making important contributions to
man's health and economic well-

bacitrain,

"define")

also

indicated

dihydrostreptomycin, and you'll see what

drene, and, as a clincher,
And

mean.

words of a

in

than

more

*

these

are

all

the

scribed

for beast

Pfizer

is

leaders

well

as

5

!

Argo Oil

Vote Against

BerksKire Fine Spinning

Closing 15

Year-Round Saturday

*

17

prepared

American enter¬
curative chemical in¬
of

38

How Federal Reserve Can Contract

Punta

111, no
inspection.

Alegre Sugar

Laboratories

and

broad

the tongue of

highly

'

Broadway, New York 6 'C

BO 9-5133

Teletype NY 1-3370

19
Direct Wires

Man's Bookshelf

Business

has,

of

thousands of doctors.

1950

daily, current net figures running
at an annual rate of around $10 a
share

(with allowance for higher

1951 taxes) there are a lot
reasons

of good

why American Cyanamid

chemical

~-a

and

-

recent

earnings of $322
and
expanding

gross

a

drug—well

justifies a" price of around 106 for
its 3,575.000 shares of common.
Paid

movement

of Abbott stock

high ground must have
some
reason.
Meanwhile, it does
not appear you can come to any
particular grief by being a stock¬
holder.
Common around 53 paid
into

Coming Events in the Investment Field

8

—

__.

■f.

8

Dealer-Broker Investment Recommendations

Associated
'

Program"-

Einzig—"Britain's Investment

|1

"V

* V

6

of the News—Carlisle Bargeron

From Washington Ahead

Dev. Res. Corp.
;

Yv' v-:.

\

■

Clyde

,

Porcelain Steel
Indications of Business Activity

29

Mutual

26

Giant
Funds

News About Banks and Bankers

Reeves Soundcraft

8
Wilfred

Observations—A.

*

May

Singer, Bean
& MACKIE, Inc.-

i 34

Reporter's Report

Our

Portland Cement

16

—

NSTA Notes

y

,ri

Out Reporter on

Security

Prospective

V 18

Governments—.

HA-2-0270

40 Exchange

PL, N. Y. d

Teletype NY 1-1825 & NY 1-1828

32

Offerings

Public

22
^

Securities

Utility

'

.

........

•'

Railroad Securities

>

dend this year.

15 |

Securities Salesman's Corner
Securities Now in

No

outline

complete

.

;

in

;

v

this

field

without

a

30

Registration

Air Products

Like Best

2,410,000

5

The State of Trade and Industry

'

[

Dictograph

2

_

Baker-Raulang
Collins Radio

:
The Security I

f

>

$

would

sketch of

This company on

Merck.

:

20

—

$1.85 last year and earnings would
suggest a more rewarding divi¬

be

*:

new

$4.62 in 1950 and could be
of common
outstanding earned
in 1951; could even
$4.46 in 1950 and paid $2; at pres¬
do a little plain or fancy splitting
ent price of 85 is selling about 17
perhaps. And all the while, earn¬
times earnings.
ings and growth are being prodded
Merck has been full of vitamins
along by a slick group of labora¬
for years.
First to develop Vita¬
tory scientists.
«•
min BJ in 1934, it grew soundly
Chas.
Pfizer
&
Son,
Inc., I
Continued on page 23
touched on last week in connec¬
more

'

Philadelphia and Los Angeles

20

Securities

Canadian

re¬

5

—-

It has

ether.

50% of total sales.

in

.•

Incorporated

61

—Cover

Bank and Insurance Stocks

through the years, consistently of¬

the inde¬
Don't be lulled into the notion,
pendents. This division attained
great prominence by its early and .however, that Abbott is asleep at
highly successful development of the switch. They're not; they've
aureomycin. This one product a fine bunch of researchers and
alone is thought to have accounted it would not be surprising if the
antibiotic
to
animate
the
for around $45,000,000 of Lederle's next
1950 sales; perhaps as much of trade bears the Abbott label. The
With

i

J.F. Reilly & Co.

■

million

.

35

Credit

(Editorial)

As We See It

doubt

not, to date, been a pioneer
of the new "wonder drugs,"
First, let's talk about American its most noteworthy creation be¬
Cyanamid because while primarily^ ing pentathol sodium, which puts
it's one of the biggest in the broad you to sleep on the operating table
chemical industry, its drug section by abaft spinal application, and is
alone,
Lederle
Laboratories, is kinder to stomach and lung than
many

•'

REMINGTON ARMS

in 1951 Fiscal Year___ 36

Regular Featurew

second'

and

of any

than

Y\'.V

a

dustry.

bigger

1

27

Snyder Reports on Budget Operations

man.

as

around

deserve your

a

!

24

Survey of Municipal Bond Market-

'

antibiotics,

around

Abbott

I

12

Mid-Year

pre¬

suit¬ spected line Of ethical drugs pre¬
trundle sented through smart advertising
sales techniques
that have
out some of the stars in today's and
financial drama, the "lab" happy kept the name Abbott near the
leaders in one of the fastest grow¬ top of the field, and at the tip of
prise—the

/

4

:

Manufacturers' Profits Lower in First Quarter

authentic

the

of

one

in

common

fered

profit!

And so, having

sections

WHitehall 4-6551

..

Controls

Judge Clancy Rules Against Otis & Co. in Kaiser-Frazer Suit

infec¬

50

it's being

able stage setting, we now

ing

Dept

NEW YORK

a

tious diseases, and

dexi- preferred

Chloromycetin,

metamucol,

I

*

Pleads for More

Banks Flace Debentures

NYSE Members

and the
manufacture and dis¬ $29,000,000 of new capital recently
tribution
ot'
ethical
drugs
has obtained will permit an expansion
landed
a
whole
batch
of new of significant proportions. With
words (many of them quite un¬ sales rising roughly 1,000% from
pronounceable)
in the
English 1940 to 1950, this outfit exudes
dictionary.
Just mouth over (I good management and the new
say

Securities

WALL STREET,

Telephone:

the

didn't

us

12

Bonds

Pfizer exclusive,
roaring along.
Its use is

Terramycin,
is

a

"a drug on the market," I
have news tor you—it isn't drugs!
as

being,

Obsolete

Green, AFL Head, Urges Higher Interest Rates on Savings

$300,000,000.
Ira

ex¬

such

thing

and

about $88,000,000,

mates

if

So

there still

tell

it.

American Marietta
FIC

Sales of penicillin in 1949
while esti¬
for
1951
run
as
high as

grows.

peni¬
corti¬

and vita¬

sone

Defense Mobilizer Wilson

price has been reduced to only a
slight fraction of the original 1943
quotation, but still the market

does

not

else¬

introduced

were

methods have appeared,

tion

ob¬

term

viously

taken

have

friends

tech¬

where; and some felt the market
for penicillin
itself was getting
saturated. Well, improved produc¬

couldn't

dud,

who

our

for doing

niques for manufacture of this an¬

y—

something
you

10

i

Babson___

Lehigh Valley's New Look—Hubert F. Atwater

lfttie vul¬

lost-cost

new

.

69

*

t

7

Its

retake.

while to make it

people

and

wet

5

4

Alaska—Land of Opportunity—Curtis ter Kuile__

leading position in the production
and sale of penicillin was thought
a

all

pre¬

but it's important enough

nerable

real

its

sale

ferred.

for

used

with

tion

from

are

day

We regularly buy watered

dunking,

a

Aquashow

own

our

day.

stock

Drugs

••V.V-'i

holders.

Wilfred

We

certain

of the

?

generous

Tomorrow's Markets

Washington

,

*

Published

are

interested in

offerings of

Di-Noc
on

Twice

U.

1

Drapers'

1

Weekly

land,

and!

CHRONICLE5

FINANCIAL
Reg.

page.

cover

COMMERCIAL!

The
We

36

You

and

See article

28

(Walter Whyte Says)

c/o

Gardens,
Edwards

Reentered
WILLIAM
25

preferred STOCKS

B.

New

York Stock

Exchange

Street, New York 4

HAnover

Members New York Curb Exchange

50 Congress Street, Boston 8
Hubbard 2-8200

2-4300

Teletype—NY

Albany

-

Chicago




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1-5
-

.

Schenectady

WILLIAM

Worcester

DANA

D.

RIGGS,

ary

1879.

'

Business Manager

.

in United States, V,
Territories and Members

Pan-American
of

Dominicn

Union,

Canada,

per

$48.00

and

issue)

etc.).
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Other

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Chicago 3, 111.

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Salle

St.,

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Note—On
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<

Works

year;

per

S.
of

Bought

in

—

Sold

—

Quoted

year.

$52.00 per year.

Other

(general news and ad¬
every Monday (com¬
plete statistical issue —• market quotation
retards, corporation news, bank clearings,

$45.00

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Every. Thursday

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Thursday, July 12,

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HERBERT I). SEIBERT, Editor &

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Smith.

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&

Record

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account

of

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i

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Exchange Place, New York 5, N.Y.

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|

The Commercial and Financial Chronicle

(1521

4

for armament, in addition
weakening the inflation con¬

needs

Wilson Pleads foi More Controls

to

warns

I

back

is

the

forces

against letdown in war preparation. Says inflation danger is
a menace and cites increased costs of defense materials.

talk

even

of

cutting

strength

to

of our armed
million men or

three

Thursday, July 12, 1951

.

be set for the disaster of runaway do know how important it
inflation..
v:'-J-■ balance the family budget.

trols.
There

broadcast

Defense Mobilization Director in nationwide

..

should

like to ask

wives of America

ing to

the house¬

who

listen¬

are

tonight to make

sim¬
ple but effective test of the action
me

a

I

am

ber

sure

the

down

of you remem¬

many

famous

by

is to

ledger

Charles

written
in his

Dickens

novel,
"David
Copperfield." ;It
Congress is considering. If* Con¬ goes something like this:
gress passes disabling legislation
"Annual income, 20 pounds, an¬
Defends rollbacks and complains of pressure groups.
—and I mean just that, disabling nual
Joint Chiefs of Staff.
expenditure
19 pounds 19
I
am
confident that Congress legislation—preventing
us
from shillings and six pence; Result:
No
rather because
it serves
In a nationwide broadcast on
will not follow so dangerous
a rolling back and otherwise] coil? happiness.
July 9, Charles E. Wilson, Di¬ their purpose to call off the fight¬
course.
troling prices, I ask you house¬
"Annual income, 20 pounds, an¬
rector
of
Defense
Mobilization, ing in Korea before the Red ar¬
If we are to carry out our pres¬ wives to join with me and my nual
expenditure 20 pounds and
pleaded for a continuation and mies there are completely annihi¬ ent
wife in a very practical project. 6
plans to build up our might
pence. Result: misery."
intensification of economic con¬ lated and the victorious United
less,

still

to

or

figure far below the

a

minimum

considered

safe

by the

—

trols, and warned against any let¬

preparations.

defense

in

down

of the address follows:

The text

1951, will be a month of
tremendous decision for the peo¬
July,

the

of

ple

whether
decide

of

d

r

fufill

to

'

of

wark

our

world.

Across

shadow

is

to

Charles E. Wilson

terrifying degree.
Communist
masters
a

Already

dominate the

lives of 800 million

people—already

great majority
of these people have been reduced
to

a

state of serfdom.

a

lions of them

Untold mil¬

used

are

slaves to

as

by

the

Kremlin

lor

alive to this terrible

menace.

The attack by Communist forces

of

Republic

free

the

the

nations

of

Korea

solemn

damnable

gave

warning
of the

purposes

Communist masters.

The

United

Nations

to
the defense
of the Republic
of
Korea and in spite of the fren¬

m.

efforts of the

Communists—

including the onslaught of hordes
of Red Chinese troops—supplied
with Russian

arms

sistance—the

United

fenders

of

other

and

as¬

Nations

soundly

freedom

de¬

Now

the

suggest
it

warlords

truce in Korea.

because

forsake
come

a

until

silent

just

their

they

see

ambition

to

the free nations?

manganese
mining co.
(An

Arizona

False

present*negotiations in Korea

fervently that they
a
quick truce and
ultimately to peace and freedom
for the sorely wounded Republic
to

of Korea—let

false

a

not be lulled into

us

of

sense

security

Price 25c per share

If

we

ends the Communist

Korea

will

we

truce

a

that

aggression in

have

won

great

a

victory, but it will not be the final
victory over aggression. Our po¬
will

sition

be

infinitely stronger
Korea, but still

will not be safe.

in

unprepardness

God's'

by

Then,
time

grace,
we
had
time bought by

to catch up,

allies'

our

efforts

until

enemy

But

crises.

past

contain

to

the

we could get ready.
time, if there is an¬

next

directly, immediately, and with
devastating effect. We have to be
ready to protect ourselves right
from the beginning.
If world diplomacy can contrive
to contain the enemy in time, so
much

Request

the

better.

diplomatic

But

victories

Members Nat'I Ass'n Securities Dealers

BO 9-6162

MEMBERS
MIDWEST STOCK EXCHANGE

against

enemy of this kind unless

dipomats
strength.
We

backed

are

cannot

by

place

faith and

our

of diplomatic

•

had

we

plans

to

better

build

all

we

I

month

at

of

ence

I

That

the

over

a

to

a

learn

O^IVE

STREET

is
to

a

in

movement

wreck

the




There

foreign

was

Director

of

De¬

because

I

duty to do so,
to gratify any

my

of

in

free

a

But the
free economy were
times of peace.
It

designed for
has
always
been

goods,
pelled

in

the

resort

to

That's

to

necessary
in
its unnatural

with

war,

to

control.

exchange of
governmental

why 1 am com¬
a
strong defense

favor

production act.

I repeat, is a month
great decision in America.
Last

Congress

year

^Defense

of
a

as

extended

That organiza¬

functioning
Con¬

until

a

the

old

new

law for

one

can

a

be

passed

by both houses.
Unfor¬
tunately, Congress added amend¬
ments

which

stabilization

cripple

and

the

economic

new

bill,

aid

rollbacks

beef

in

area of manufac¬
buying resumed. So it was not
items, including men's and entirely clear until then that con¬
trols were needed. The next month
clothing
and
shoes,
woolen yarns and fabrics, cotton the President issued his Proclama¬
textiles, farm machinery and every tion of National Emergency, and

women's

other

item—regardless of whether the following month prices were
prices are too high.
This frozen.
prohibition against rollbacks will
Wants Stronger Controls Now
take billions of dollars from the
of

pockets

American

the

the

Rollbacks

The

Since

1950, cattle prices have

increased

than

more

50%.

Cattle

selling at more than
150% of parity—that level which
farmers themselves regard as fair.
In the same period—that is, since
now

1950

prices

—

by

paid

farmers have risen less than

13%.

11%.

Food

,

than 16%.

wizard to

to the

come

that

cattle

line

with

why

price

mathematical

a

prices
other

officials

rollbacks.

And

rollbacks

conclusion

of
is

far out
prices. That
are

should

ordered
all

if

even

into

go

the

three

still

would

effect,

be

mean

increase in the expenses of the
average family of approximately
a

da,y._ The stage would

GUlltl

is

It

estimated

that

roll¬

the

ers

I

have

cian.

I

I

not

am

not know

politi¬
political

a

the

complications in the halls of Con¬
gress.

But I do know what meat,
and clothing bills are. I

grocery

meets the

Established

of

slashing
of

the

cutting
the tax bill, of
depriving the De¬
fense Department of funds it
program,

have

requirements

York

Stock

Saturday's
avoided.

smart

that

game

necessarily

was

Curb

inequities

and

Delicious Food

Excellent Service

York

Chicago
New

Cotton

ored merchants and manufacturers

who

had

boosted

prices

to

high

levels and

Ever

"

,

since

.

,

last

,

.' *

(.

January

■

Board

beef

whose

and

prices

reasonable

other

had

levels.

If these rollbacks

Congress,
other

commodities

soared

the

general

are

country
rise

to

un¬

]
barred by

faces

an¬

in

prices. ] If
forbidden, it will be
necessary
for price officials to
grant further increases for those
are

on

page

18

SAMPLES

Trade

invest SI to inspect
you
development in successful
stock timing?
For this explan¬

Exchange

atory TIMING FACTOR folder

of

Cotton

other

new

Inc.

plus free

Exchanges

samples

of

complete

cover

han¬

dling costs to Dept. B

.

N. Y. Cotton

Exchange Bldg.

ANALYST INSTITUTE

NEW YORK 4, N. Y.

PLaza 3-9100

CHICAGO

St., New York 22
:

<

DETROIT

..

the

price officials have been trying to
iron out the kinks in
jthe general
freeze order and to establish
price
levels fair and just to all. That is
why rollbacks had been ordered

Will

Exchange

Exchange,

Orleans
And

For reservations

Madison Ave. at 54th

arbitrary

good many
injustices. It fav¬
a

Exchange

Commodity

Intimate Cocktail Lounge

•

must

we

an

service, send $1 to
c

game

But he

now.

action which created

Exchange

York

New

Atmosphere

•

New

New

Spacious Rooms

•

so

The general freeze of last Janu¬
ary

Members

Central Location

Homelike

quarter¬

how every

you

been

quite

world is

H. Hentz & Co.

discriminating

•

last

Continued

r
•

tell

1856

quarters

talk

in

the

morning:

can

consider

in

said

do

9fcU

•

defense

mistake

rollbacks

ar¬

country's

He

in

man

Monday

back.

restraint.

themselves.

already

an

dollar

going to do in the future.

The wiset

the

it penalized those who
selling at
125 % of parity. And again I say had not—and particularly those
who had responded to the
that parity is a standard of fair¬
govern¬
ment's appeal for
ness
voluntary price
recognized by the farmers

cattle

into effect.

increase of from

high cost of living. It could

that

big problem now is not
did in the past, but what

we

are

Saturday's

It does not take

It could

the

we

could

than

less

now—or

ened. Our

what

is not

risen

on beef would save consum¬
$700 million a year/ but this
This could mean price boosts of savings will., be:* lost unless Con¬
from 5 to 7% in the next
year. gress permits the rollbacks to go
an

should not be voted

present controls should be weak¬

have

backs

$14 billion in

charge of delay as an argu¬
now
that stronger controls

ment

What is the story of beef?

January,
are

In any event, it is absurd to use

buying

public.

has passed the Senate, would
cripple it still further.

mean

Chinese Communists unexpectedly
the war and the panic

tured

Theodore B. Archibald, Manager

is

further

and in the wide

as

it

to

the

over

November, the

next

the economic sta¬

agency—is

The law expired June 30.

month

victories

our

next

gress was unable to agree in time
on
a
new
law to take its place.
it

with

about

effectively.

So

off

Act. prices in general have risen less Saturday's game—and it is

Production

wages.

tion—known
bilization

and

make

that, after the act was passed on
Sept. 8, the panic buying tapered

Wages of manufacturing workers

passed

Under it, a nation-wide organiza¬
tion has been set up to stabilize

prices and

pads

our

In

January,

This,

that,

some

insur¬

their

enterprise,
that I am opposed

means

of

get

pencils ready.

a

program.

St. Louis 1,Mo.

of

controlled economy.

ranged in the Korean war, there
509

fixed

on

and

entered

in danger. At the
the President I took

principles of

times

all

us

forbade

emergency.
that the coun¬

me

life I have believed

my

Let

to

•

to

living

are

Ndrth Koreans. In

doctrine

pursue

truce has been

who

to

tion.

of

the exist¬

was

of the

shocked

millions

incomes like pensions

the

extending the Defense Pro¬
duction Act for 31 days, Congress

Mobilization

All

the

quiet

December when

declared

job

and that

profoundly important
affecting our

before

and put

newspapers

Many people in America have
already learned that difference
between
happiness and misery.
Surely, it is appreciated by the

national

meant

decisions

am

even

last

a

try I love
request of

and

peace

life

President

country's future.

& Co.

tin the

America's

home, July will be

of

domestic

politician. I left the

a

comparative
private
the

world peace.
Here

Stix

not

am

fervently want-

so

us.

neces¬

price of other articles ance annuities. And it is
appre¬
Says Inflation Is Still Present
that you have to buy from time to
ciated
by
many
others
whose
Then put the paper care¬
If inflation gains on us during time.
wages and salaries have not kept
this period, Stalin will have won fully
away in a drawer.
pace with rising costs.
One year from now take out the
a
tremendous victory—as he has
If inflation is not stopped, the
paper and
compare
it with the whole
planned—without firing a shot.
country
will
know
the
will then be called
Like other countries the Commu¬ prices you
meaning
of
Charles
Dickens'
nists
have
taken
over—when upon to pay in the grocery, the ledger.
and
the
those
clothing
nations
were
broke—we meat market
In the debate in Congress over
If you do so, I am con¬
would be easier prey if we had store.
the Defense Production Act, the
squandered our economic strength vinced that you will be in for a charge has been made that the
through the process of inflation very unpleasant shock—you will government waited too long to
and
the
ultimate destruction of be using red ink when you figure use
the
powers
granted
under
the value of the dollar. The only out your household accounts—un¬ that act when it was
passed last
less Congress in this fateful month
way the Russians can beat us is
year.
to encourage us to beat ourselves. passes a strong law against infla¬
I have this comment

might—the might of the free na¬
tions—and implement the strength
of their diplomats—so they may
proceed from a position of great
military strength to work out
what

prices of all the household

down

a

Rather
our

our

up

pencil and

a

and jot down the

paper

ments

$12

safety in the hope

WEBER-MILLICAN CO.

cannot

you

to take

you

overwhelm

strong

Surely Americans don't need to

ask

piece of

a

sities you buy during the course
of a week. Look at the advertise¬

than it was before
we

I

cost

a

year—it is
do so without
a

imperative that we
wrecking our economy—by per¬
mitting
wholesale
inflation
to

interferences

reach

can

victories alone.

jjj- 50 Broadway, N. Y. 4

for, our

beloved country.

win

on

pray

lead

may

Corp.)

stock

Offering Circular

I

—and

years—at

billions

50

and certainly not
personal ambition.

Security
the

few

next

thought it

an

common

H

some

fense

Warns Against Lull Into

other world war, it will be differ¬
ent. The enemy can strike at us

magma king

m-

be¬

duction Act?

over¬

We Offer

i

days

seven

the Defense Pro¬

on

be reminded of the tragedy of our

Communist

Why?
the error
of their evil ways?
Is it because
they are at long last willing to
Is

ac¬

Why was it
voice of the Soviets was

fore the vote

de¬

feated the Communists.
.

been

at any time.

cepted

that the

sprang

.

zied

try¬

the

No matter what the outcome of

America and the remaining free
were
slow in
becoming

the

act were

have

could

world

nations

on

and

tions

conquest.
;

due

ing to hamstring the activities of
price officials?
For months cease-fire proposals
had been made by the United Na¬

produce the vast array of military
weapons to supply the armies cre¬
ated

the

enemies of

the

eclips¬
ing the light
of liberty and
freedom

was

olive branch at the moment when

commun¬

ism

Act

Why did he make it
at the very time pressure groups
were
urging Congress to weaken
the act? Why did he throw in his

the

of

Production

expire?

to

that world the
black

—

proposal just one week before the
Defense

free¬

in

dom

Nations

United

the

to

Malik—make his cease-fire

Jacob

as

major

world peace

a

tative'

the
b u 1-

destiny

which

terms

—

permit freedom to reign again in
the subjugated nations.
Why aid the Russian represen¬

w e

wisely

otherwise

or

terms

contemplate consideration
plan—a plan to

would

will
o

c

e

r

changed their

If the Reds have

plans of world conquest, the in¬
to
consider
a
Korean
truce would have
been in much
vitation

in

of

to

of Korea.

all

from

broader

States.

United

History

withdraw

them

force

armies

Nations

PITTSBURGH

GENEVA, SWITZERLAND

.

%

126

Lexington Ave.

New York 16, N. Y.

Volume 174

Number 5023

.

.

The Commercial and Financial Chronicle

.

(153>

Continued

m
Steel

The

Carloadings
Retail

Trade

Commodity Price Index
Food

Price

Auto

arid

Industry

2

page

The Security
Like Best

Electric Output

State of Trade

from

The Utility

Production

Index

Production

Business Failures

I

tible issue is expected to be

Calvin

Total

fully

When this is
completed, approximately 2,500,000 authorized shares will be
outstanding. Management and di¬
rectors are heavy holders of the

industrial

production in the United States the past
change from that of the prior week, but was

slightly above the level for the like period in 1950.
;While

initial :claims

for

unemployment

common.

for

insurance

The

the

Although

-

entire

Reeves

have

an

of

pattern

Bullock, New York City

Maintaining stocks of most electric and gas companies are
selling near historic low basis and now offer attractive yields,
Mr. Etherington points put, with a reasonable degree of price
stability, utility industry can reduce unit costs with growth
and improved technology. Says utility equities should appeal
to trustees of pension funds and other institutional investors.

all

week showed little

wise for

public

been

out

utility

of

dropped substantially from the unusually
high level of the previous week, the number of continued claims

Soundcraft

is

recent

evidence

reflected somewhat of

making great strides and has just

terest.

the
Bergen
Wire Rope Company.
This com¬

ities

favor

coming
difficulties.
Taxes
on
property, income, and output now
take around 20 cents of every

stocks

market-

U t i 1-

latest

recorded

In

the

lost

a

with

Mills

that unless

be
of

a

panding

rise.

no

some

ex tended.

business,

new

notwithstanding

ordering

new

occurs

quickly, the shut-down will

•"serious, 50% production curtailment" for rayon weavers and
,

are

Few

metalworking people expect the materials supply to be¬
a cease-fire agreement be reached.
Steel,
copper and aluminum still are expected to be light through the
remainder of this year.
Steel consumers have been converting
their DO-rated orders to the Controlled Materials Plan and by
weekend most of them were over the hump, say "Steel."
With
July 7 the official deadline, last week witnessed a deiuge of ton¬
nage placed for September, the last month of the quarter still
open for scheduling of carbon grades, this magazine notes.
Most
of this came from the larger consumers who did not receive their
much freer should

allotments

as quickly as the smaller consumers, primarily because
larger users' applications are more difficult to process.
A

number of allocations have been set up for fourth quarter,

CMP becomes fully effective.

fi

>

•

when

;

consumers, this trade paper declares, see a tighter'
in September after schedules are established by the mills

Unrated
squeeze

later

this

week

products in

products

on

tightest

sheets—substantial

requiring

a

45-day

lead

time.

On

supply—plates, shapes, bars and hot-rolled

arrearages

will

be

carried

over

at

the

end

of August.

production the past week reached the lowest
weekly total since December, 1949, except for the week ended
Jan. 6 this year, and compares with 128.056 in the iike week pf
last year, states "Ward's Automotive Reports," a trade authority
auto

In

to

Reeves Soundcraft and its subsid¬

iaries

proauc.ion was

all

stopped by a supplier strike and Hudson's
again held down by its labor dispute, this agency

Also

improved volume next Week result from the
scheduled resumption of Studebaker's passenger car assemblies,
the agency pointed out. Total car production for July now appears
likely to be down about 14% from June, it added.
an

.

The government announced last Friday

that spare tires again
equipment on new cars.
Tire
manufacturers sta.ed they had not expected the action before the

would

final

•

;

be

in

somewhere

permitted

as

original

quarter of the year.

-

of from $400,-

neighborhood

A

effect by several

in

shoe

prices ranging

up

to

9%

was

offering of two is¬
debentures of the Federal

A successful
of

sues

June 20

on

Banks

Credit

Intermediate
made

was

by M. G. New-

New York ^fiscal agent for

comb,

the banks.

The finapcing,

total¬

ing. $88,205,000, consisted of $24,940,000 2.10% consolidated deben¬
tures due Oct. 1, 1951 and $63,265,000 2.35% consolidated deben¬
April 1, 1952. Both is¬

tures due

and

dated July 2, 1951

were

sues

placed at par.

.

$48,160,000 was
used to retire a like/amount of
debentures maturing July 2, 1951
Of the proceeds,

and

$40,045,000 was new money.

2,

July

been

bentures outstanding amounted

to

$782,615,000.

by

Shoe Corp. of Beloit,

will

ture,
and

8%

McKinnon

CHICAGO, 111.—Edith M. Brown

that

quality.
neair-

tial

The

industrials

and

gas

hisyields

outlook

analysis

involv-

factors.

There

considerable

Miss

Brown

La

was

with Reynolds &
Mason, Moran & Co.
ously

may have
fact that the

In

111.
with

231

—

residen¬

decreased

during the

around 7%
riod.

same

by
pe-

spite of these problems the

industry has served both the publie and its stockholders well. Inof

dicative

this,

Federal

the

Power Commission reported for
the larger privately-owned electrie utilities net income of $229,442,000 for the first quarter of

19^1.

.P1*5.ooo <Sne!?nn a smal1 fa*n

? $228,649,000 reported in
J]}e £irs. fiu^
?
?' Respite
*ac*
earnings were taxed at 47% comPare^ with 38% last year.
This
amounts to an increase of 2^.8%
ln
to rate. These remarkable
results attained m the face of
higher costs and taxes belie the
earlier dire predictions for the ii^
?7er,..

dustry.

••

in this cooperative endeavor,
Political expediency is being replaced by closer adherence to> fi-

been placed on
utility industry
is dynamic in its growth and ap-

ence

nancial

the

been

operating realities,

and

_

It is becoming recognized by those
underesti- who follow the industry closely

substantially

mated.

that large

The

strides have been taken

previ¬

Co. and

of

factor

is

at

great

frequently

the

of

importance

overlooked

Chronicle)

record

to

the

realize

management

in

over-

I

TABLE

V

Salle

Average

December

May 2,
1951

March

1950

March

1951

1950

Higginson

South La

tion, particularly at the state
level- The courts ., have > a so
handed down some very construc^ve decisions. This has come
Continued on page 22

Utility Average Relative to Industrial

,

Bertram V.

Lee

is

One needs only to

management.
look

toward more enlightened regulri-

Factor of Management

Joins Les Higginson
(Special to The Financial

CHICAGO,

cost of

excess

pbasis

success

Corporation,

may

overem-

the

on

the

A

South

231

is

com-

of

electricity

the unfavorable impact
Never before have management
profits tax, infla- and the regulatory commissions
ticln, higher retroactive normal worked in such close harmony as
and ..surtax rates, problems of they did last fall to insure enactreguflation, competition* from pub- merit of an equitable excess prof-*
lie
power,
rising interest- rates its tax bill. Some very practical
and other matters. Too little em- results have come from expenof

that

Fletcher

in-

an

offer

and

jmedium-terfn

been

phasis

Salle

Street.

is

I.

attractive in relation
recognized
investment
An attempt to judge the

adverse

index

the

Etherington

ing comparison Of both favorable
and

equipment have added

operating expense, yet the cost

decade from 1940 to 1950, whereas
Eric

requires careful

have

manufacturers.

to

electricity is probably the only
important element in the cost of
living; that has gone down.
As
measured by the Bureau of Labor
Statistics index, the cost of living
increased
by over 71%
in the

basis

or

now

Federal
all sales

of

appear

their

to

joined the staff of Thomson &

McKinnon,

June 11
1951

Dow-Jones Utilities:

Average
Dow-Jones

Average

Closing

43.17

39.89

43.04

42.50

42.56

206.22

228.87

248.78

261.27

251.56

20.9%

17.4%

17.3%

16.3%

16.9%

Price

Industrials:

Closing

Price__
% of

Utility Average as
Industrial Average

put into

INTERNATIONAL ARBITRAGE
'

-

••

v., ■V

'i :.vy

Foreign Exchange

Florsheim Shoe Co. of Chicago, Freeman
Wis., and U. S. Shoe Corp. of Cincinnati,

$3,000,000,000 this year for new construction,
$1,000,000,000 for replacement to meet an expected
rise in civilian and military demand. It also noted

spend

10%

a

would

barrels daily by.the

'

—

r-V

'ti

'-f

Foreign Securities

Foreign Coupons and Scrip

New stock company

March, but it

was

formations throughout the United States




18.1%

Report
on
Internal Financial
Stability—Organization for Euro¬

Economic Cooperation—Co¬
University Press, 2960
Broadway, New York 27, N. Y.

below the 9,216

new

businesses char-

Continued

cn

page

24

Serving bunks, brokers

and security dealers

pean

lumbia

Timing

year-e^d.

during May totaled 7,544, Dun & Bradstreet, Inc., reports.
This
was only slightly less than the 7,653 recorded in April, and 7,649
in

to

selling near

are

are

a

on

Chronicle)

such

large part of the spending will go for new refinery capacity.
boost the present 6,95.3,000 barrels a day output, now
only 600.000 barrels above current needs, to more than 7,061,350
It

rials' and

electric

low

33y$%

industry, according to the American Petroleum Insti-

another

to

that

toric

utilities

assuming

of

than

other

pears

Joins Thomson,

has

panics

tax

Higher wage rates and fuel costs
as Well as rising prices of 'mate¬

volatile

most

the

leading producers.

effected

The oil

excise

The record indicates that stocks

of

is well beyond

Electric

paying .and

to have ability to surmount
adversity to a degree that has

total amount of de¬

1951, the

Poor sales in recent months
were the chief factor in the
reductions, shoe industry officials
said. Brown Co. of St. Louis, one of the nation's largest shoe
manufacturers, trimmed its wholesale prices by 35 cents to 55
cents a pair. At retail, the price cuts will amount to $1 a pair
on shoes now selling for $8.95 to $15.95.
Price reductions have
also

tries.'

much disfavor.

so

electric

from

revenue

This

contribution by many other indus¬

f*>

tain

FIG Banks Place Debs.

,

reduction

reflected

of

utilities.

dicated in Table

action gives tnem a talking point in seeking larger allocations of
rubber.

dollar

data

more

Street.

Comments by industry on lifting the ban point out that

in¬

renewed

000 to $450,000.
This common

was

contributing to the low production total fur the week
were the suspension of Lincoln and Ford truck output in Detroit
Monday and Tuesday, the suspension of Reo's truck assemblies
because of a supplier strike and loss of production by Chrysler
Monday because of labor trouble, "Ward's" said.

-

run

(Special to The Financial

Prospects for

some

explanation is to be found in cermisconceptions concerning a
number \of
important economic
stock, selling at
factors affecting the outlook for
approximately $2 per share ap¬ the
industry.
,f
pears to have a great deal of at¬
The
degree
to
which
utility
traction as a long-term radical
equities have lost ground to the
speculation and for capital gains.

the

notes.
*

should

As of the close of business

producers being down Wednesday for the
July 4 holiday, Nash was closed for its annual two-week vacation
period, Studebaker suspended car assemblies for the entire week.

Willys-Overland

of

there is

quarter

industry,

addition

year,

re-

are

factual

showed

first

were

Automotive

of the

a

earnings for the
are
available
ending March 31,
to the scrutin¬
1951, of $43,000 net after all taxes.
The gross business of Reeves izing investor.
Under
such
Soundcraft is running in excess of
circumstances
$400,000 per monlh, or an annual
it
is
surpris¬
rate of $4,600,000.
These subsid¬
ing
that the
iaries alone are earning at the
prices of utilrate
of
approximately
$250,000
i t y
common
net
for
1951, and the net for stocks
have

iary,

injecting a slight note of un¬
certainty in the steel and metalworking industries, now producing
at a record pace, says "Steel," the weekly magazine of metalworking, the current week. Metalworking executives agree with Wash¬
ington that the armament program must be pushed ahead as
projected—truce or no truce. The defense program combined with
a
heavy capital expenditures program will maintain an active
economy. Ac the same time industry men believe that a cease-fire
agreement would result in a psychological letdown by the public
and may take the pressure off demand for hard civilian goods,
this trade publication adds.
Some retailers report that demand
for new autos and domestic appliances has slackened and ascribe
the dip to the truce negotiations.
Gray market steel prices have
eased as result of the peace conversations, it continues.

the

acquired

„

Korean peace negotiations

come

company

over

manufactures

pany

A rayon goods official forecast four to five months

finishers.

The

ex¬

quired
by
to
all types of regulation
make full disspecialty wires, wire cables, wire
closure
of
ropes for towing purposes and for
use on all
types of construction information so
that pertinent
jobs. This wholly-owned" subsid¬

price-

some

closed for vacations and the industry expects

were

Corporation is

one.

recently

textiles-industry, dealers considered the holiday-week

one

cutting.

week

Outlook

By ERIC ETIIERINGTON

converted this year.

%

5

folder

on

samples

-

Factor

—

Explanatory

stock timing, with free

of

complete

$1.00—Dept. B,

service

Analyst Institute,

126 Lexington Avenue, New
16, N. Y

—

York

Albert de Jong &
37 WALL

STREET

Telephone HAnover 2*5590

NEW YORK 5,

Co.
N. Y.

Teletype NY 1-1401
'

<6

(154)

The Commercial and Financial Chronicle

Thursday, July 12. 1951

..

.

V1

' f

.

V*

■...

■

•,.!.

.

Continued

From

from first

Washington

Ahead

V'V

at least this
quantity is considered necessary
to provide us with needed amounts
of meat and dairy products.
We
really need 3 V? billion bushels to

many years ago; now

page

The Market Outlook

be comfortable.
Probably if we
fundamentally, although wish to increase the yield above
falling commodity prices and ris¬ this amount it could be done only
mean
anything,
international ing inventories have temporarily by reducing the planting of other
Communism is always at war with obscured it.
Washington is still erops.
Agricultural supply
and

the News

a

fire.

cease

If

the

writings

of

altered

Lenin, Stalin and their associates
By CARLISLE BARGERON
Former

Senator

country's earlier

began

Burton

hear of them,

to

an

Wheeler

K.

"Liberals,"

when

of

Montana,

those of

outstanding and

influential

of the 20's and

early 30's, but whose political
by such advanced "Liberals" as the CIO and
certain

New

the

made

Middle

would

York

racial

in

statement

West

recently

again

never

that

suit out

the

into

come

first

career

Senator

clipped

was

in

definitely

prepared

to

•least
vote

Carlisle

Bargeron

But you go

out and talk with political realists, students
moving in our midst, and you develop doubts, at
the question of whether the
people are enough fed up to

forces

on

for

overturn

an

haven't become

more

in government.
You wonder if the people
punch drunk than angry.

The Administration is

just as confident as it can be that with
/'peace" in Korea everything will be forgiven and that, indeed, it
will be accepted as the "peace" party whereas the
Republicans
and

MacArthur wanted

bunk
in

there

but

the

voters'

is

no

to

"extend

the

war."

It

is

in

the

sheerest

mistaking the Administration's confidence

verdict.

my

opinion,

internationalist

group

affairs

is

the

determination

of

Republicans,

the

influential

the

at

even

have

to

their

own

in

way

international

expense of socialism in this country.
For a
they have spent their energy and money against
New Dealism or Fair Dealism in this
country but they have in¬
sisted upon supporting Roosevelt and Truman because of their
"foreign policies," either Roosevelt or Truman or someone with
similar "foreign policies," and in at least two instances, Willkie in
1840-and Dewey in
1944, I am satisfied they had very little hope
that either could win,
but,notwithstanding .all their declaiming
about the country going to socialistic
ruin, they were not willing
to forego the "foreign policies" so dear to them.

good

10

years

One after another of this group has come into the
Washington

government,
to

much so that it was quite logical for Roosevelt
Republicans with the contention that Republicans

so

the

taunt

were

running the
complaining. The

run

think

or

they run, the war efforts, the crisis efforts,,
lift a voice against the
"encroaching socialism" being,
foisted upon the country by their CIO and
left-wing associates.You never heard any of them
complain against the Communists
with whom they worked shoulder to
shoulder in World War II,
and apparently at least
one, the late Jimmy Forrestal, was quite
and

•

place.

As

,

one

plained to

:

stocks

looking

are

1952

of

summer

beyond

when

Gov¬

far

off.

is

talk

"meddle"

poor grace for them to
would send them home.

industrialist currently

on

in

1952 will not then

interference

has

made

with

vinced

the

If

had a

we

situation is to some extent the re¬

sult of the bad

corn

of 1947

crop

and the fact that our human pop¬

ulation has been
faster than

increasing much

beef cattle.

our

count if it can be done at all. And

of primary one of governmental pol¬
in 1950 icy. Our population is growing far
housing credii was liberal¬ more rapidly than the experts be¬
ized.
Undoubtedly there will be lieved
would
be
possible
and
plenty of white rabbits which can should reach 155,000,000 by the
be pulled out of hats in the event end of the year.
reversed

this

once

kind

more.

A

move

made early

was

when

"deflation"

that

in

measurable

but to

rising standard of living

a

Europe and other parts of the
world. To all of this may be added
in

additional
rous

demands

metals

countries

for

non-fer¬

under-developed
likely to benefit from
by

Point 4 activities and the Colombo

Plan.

The
short-term
outlook
for
production has
increased even more rapidly "but stocks may not be bright if peace
The
important conclusion for there are reasons why we should psychology continues in its pres¬
security owners just now seems not be alarmed at this growth on ent state, but if our views are
to be that quotations have declined an overall basis. Take farm prod¬ correct with respect to the longr
term
inflationary influences at
primarily because of changed ucts. for example. Our 26% in¬
credit policies rather than because crease in population since 1929 has work there may be a reversal of

True,

our

cessation of the removed any fear of the gluts that the downward movement in the
Short-term traders harassed us in the 1930's. During not too distant future.
who liquidated holdings at higher World War II we boosted food
prices
have
undoubtedly
been production 40% over the 1935George Appleton
wise, if they sold the right issues, 1939 average, but we have not
George
M.
Appleton
passed
yet most holders of common stocks gained much since 1944 and in the
for the long pull need not regret meantime there are 13,000,000 ad¬ away of a heart attack at the age

of

a

possible

shooting

war.

retention

of their

economy

The

securities.

background
does not seem

inflationary

of
to

our

mouths

ditional

billion

have sidered

to

be

a

Three

feed.

to

bushels of

corn

were

con¬

bumper crop not

This is

not an

of

52.

G.

A.

He

was

Saxton

&

associated

with

New

York

Co.,

City.

'

offering of these shares for sale, or an offer to buy, or a solicitation of an offer to buy,
The offering is made only by the Prospectus.

any

of such shares.

75,000 Shares

ip Cup Corporation

the Washington

Common Stock
scene

ex¬

a

(Without Nominal

or

Par Value)

Rights, evidenced by Subscription Warrants, to subscribe for these shares at
#50 per share have been issued by the Company to holders of its Common
Stock of record July 5, 1951, which rights expire July 19, 1951, as more fully
set forth in-the
Prospectus.

that he would, and he and the Reoublicans would
suffer
defeat as they and Willkie did in 1940. A
lot of hopes

same

be

aroused, Eisenhower would get

a

lot of "independent"

The several Underwriters have
any

agreed, subject to certain conditions, to purchase
unsubscribed shares and, during and after the subscription period, may offer
shares of Common Stock

as set

forth in the

city bosses—would hold intact, and the Republican,
professionals,
the party
mechanicians, together with the predominant "isolation¬
ism
The

of the

Republicans, would scuttle

General doesn't

seem

him like nobody's business.

to realize that

so

much

of

Copies of the Prospectus

his support

writers

from

liberals" who would not in the final
analysis support
him out who consider that his election
would not mean so much
comes

an

overturn

or

a

loss

of

their

influence,

as

would,

say,

But these

liberals,

of the intellectual type, do not

have their buddies, the labor
leaders,
hower
are to

ballyhoo.
be

joining them in the

General's

unofficial

believed, he has a.very unusual platform.

saying,

affairs..

Because, if the

Democrat in foreign affairs,
Inasmuch as they are so
a

even

a

may

be obtained from

any

only in states in which such underwriters

dealers in securities and in which the

the

Prospectus

of the several under¬

are

may

Prospectus.

qualified to act

now

Eisen¬

The First Boston Corporation

Smith, Barney & Co.

Wertheim & Co.

managers

He is, so they

Republican in domestic

closely intertwined, this must
that he is against "socialized"
medicine, the Brannan Plan
and he would put labor "in
its place." But one must admit
that
he is a set-up. for the
Republican internationalists whese views
appear to»be about the same.
However, it just can't work out
that way.

A. G. Becker & Co.
Incorporated

Dominick & Dominick

Central Republic Company
*

-

-

■,

Hallgarten & Co.

July 10, 1951.

'<

i

Model, Roland & Stone

Dean Witter & Co.
Moore, Leonard & Lynch

"v •

.V

(Incorporated)

mean




as

legally be distributed.

Blyth & Co., Inc.

election of Taft.

are

years.

desires

its

levels, if they then ary and anti-deflationary factors
exist, the credit policies could be steadily at work in addition to the

do other-

votes, whatever they are, the campaign would be
quite colorful,
but the hard core of the
Democratic party—-labor and the big

of

many

drought like we had in 1947 we:
might actually face some diffi¬
culties. The tightness of the beef

profitable

a

At these lower

the

important to industry that I stay here, don't you?"
The friend replied that he wasn't so
sure.
This same internationalist
group is determined to split the
Republican party in 1952, which is just what the name of Eisen¬
hower is likely to do. Should he
get the nomination I am con¬

would

i

many,

Perhaps Government

They keep in their

friend who recently asked him
why he was permitting
himself to be made a front for some of
Truman's pet schemes:
'I've got to do it to stay down here and"
you admit that it is

*

there

has

No, seemingly it

Presumably it would be

wise, and besides Truman

.

high

and

may

delicately
been
in

more

it

than

balanced

never

sensitive to what the Communists were
doing.
wouldn't be according to
Hoyle for them to
Administration's conduct of "domestic" affairs.

„

admonition.
Already
of relaxing
credit
controls.
Wage escalator clauses
are
steadily lifting the costs of
producing goods and services and
could boost the price level 2% to
5% per annum.
The farm bloc
has demonstrated greater political
strength than ever; it brooks no

year or

much

is

demand

government about which the Republicans were
same contention can now be made
by Truman.

These men, the Charlie
Wilsons, the Averill Harrimans, the Eric
Johnstons, the Lovetts, the countless Wall Street boys, come down

here and

and will not

on

degree is in being.

What makes the situation more difficult for the

though,

than

ments by two Cabinet Ministers
then, of course, the Treasury will predicting world-wide shortages
bonds will be lower than they are soon be operating in the red again in commodities such as lead, zinc
today, having carried down other instead of showing a surplus as it and
copper.
Apparently
this
high grade fixed interest and divi¬ did in fiscal 1951.
scarcity is not due only to rearma¬
dend paying securities with them.
There are collateral inflation¬ ment demand in various countries,
be

people would be fed up with wars and
crises, with controls, with high taxes, with
steadily increasing Bureaucracy, socialism and
the

roll

peak for another

the election of

certainly think that the Ameri¬

can

of

1

current

There is a rough analogy be¬
and
tween the demand-supply situa¬
alliance tion with regard to domestic food¬
ernment arms spending may peak with respect to price supports with
stuffs
and
the
supply of nonout or even begin to taper off as a the CIO. There will be great dif¬ ferrous
metals
throughout
the
whole. This could be, but if our ficulty in cutting down Govern¬ world.
Surveys conducted in Brit¬
sense
of timing proves accurate, ment spending on non-defense ac¬ ain have resulted in announce¬
late

take issue with him.

whatnot.

deflation

shrill exclamations of alarm, dis¬

months.

lative

in them for a long, long time.
So, I
spent considerable time talking to au¬
thorities
on
politics
about
his
statement,
among them Republicans, and I have found

You would

of

afraid

more

gradual inflation, despite

rearmament

the

program will
reach its

contract

argued that quotations for specu¬

swam

are

cancellations;

will

There

defense

of

levels of employ¬
ment, wages and disposable in¬
come for that period.
It may be

have

who

rash

anteeing

of the

government. It was not a flippant statement
pertinent to the legal issue at hand.
There are few people who can more coldly
and ably analyze the political currents.
He

few

no

Capital goods expan¬
a high rate
during this process, thereby guar¬

but

darned

be

sion must continue at

the

Republicans

control

capitalistic countries.

15

internationalists,

law

a

of the

one

living

now

us

#

..

;

Number 5028

Volume 174

.

.

The Commercial and Financial Chronicle

.

(155)
■

New Issue

■

$25,000,000

Alaska—Land of

State of California

Opportunity
CURTIS ter KUILE*

By

In

commenting

4%, V/2% and 1%% Veterans Bonds, Act of 1949, Series B

proposal to

on

admit Alaska to statehood,

,

data to support view

presents

of

this* territory

Says

enormous.

it

are

..

,

furnishes opportu¬
for profitable investment.

nities

Bonds

maturing on and after August 1, 1968 are subject to redemption at the option of the State, as a whole or in part, on August 1,
1967 (but not prior thereto) and on any interest payment date-thereafter, at the principal amount thereof and accrued interest thereon
to date of redemption. Publication of notice of redemption shall be once a week for two weeks not less than 30 days or more than 90
days prior to said date of redemption, in each of the Cities of San Francisco, Sacramento and Los Angeles. If less than all the bonds
should be redeemed, they shall he called in inverse numerical order, and the part so called shall be not less than all of the bonds
maturing in any one year.
~
'
'
,

On Jan. 8, 1951

there was intro¬
the first session of the

in

duced

82nd Congress a bill designated as
S.50—' To

provide for the admis¬

11
-

t

1

F-

sion of Alaska

into

the

ion."
-the

is

latest

We believe these bonds will

have

Neiv

been dedicated
to

that

being
64th
in

meet

the

requirements

pur-

in

eligible

in Massachusetts and

security for■ deposit of public monies in California.

as

These bonds, to be issued for Veterans'
purposes, in
California
payable in accordance with the Veterans'

the

the opinion cf counsel will be general obligations of the State of
Bond Act of 1949 out of the General Fund of the State and will
be secured by the obligation of the State to collect annually, in the same manner and at the same time as other State
revenue is
collected, such sum in addition to the ordinary revenues of the State as shall be required to pay principal
and interest on the bonds as the same become due. The bonds are authorized for the purpose of assisting California

Congress

In consider¬

ing

A aska it
should
be

borne in mind
that the United
States

ter

acquire farms and homes, the cost of which must be repaid to the State on an amortized purchase

to

war veterans

Curtis

AMOUNTS, RATES,
■

Russia

in

1867

the

for

sum

its375,296,000

of

Yield

Coupon

98% of
land and

owns

acres

MATURITIES, YIELDS AND PRICE

(Accrued interest to be added)

$7,200,000 in gold and that to¬

day our government

.Amount

inland waters. Consequently state¬
hood for Alaska will entail an

Amount

Coupon
I Rate

$1,200,000

Due

i.2o% ;

Price /

(

;

Yield

I960

1.60%

Wi

1961 '

1.65%

1,300,000

Wz
H/2

1962

1.70%
1.75%
1.80%
1.85%

1,400,000

4%

land.

1,100,000

4

1954

1.25%

1,200,000

.The provisons of. S.50 include the
grant to the new State of 45,400,-

1,100,000

4

1955

1,200,000

1,100,000

4

1956

1,300,000

m

1964

1,300,000

13/4

*1965

redistribution

enormous

of

1,100,000

4

1957

1.30%
1.35%
1.40%

the

1,200,000

4

1958

1.45%

support of institutions, schools and

1,200,000

l]/2

1959

Amount

'

land,, the sale
will

be

pub¬

income from

or

available

for

the

University of Alaska. More¬
over
the bill stipulates that the
receive

State

121/?%

i

1,400,000

1,400,000

subject

call

to

at par

t Yield

August 1, 1967.

to

Yieldf

1.85%

1967

1-90%

1968*
1969*

1.90%
1.95%

1970*

1-95%

1971* 2.00%
1972* 2.00%

maturity.

The above bonds

are offered when, as and if issued and received by us and subject to approval of legality by
Dahlquist, NejJ & Herrmglon, Attorneys, San Francisco, California by the following underwriters:

Alessrs. O trick,

50%5 of net

1,400,000

1,400,000

♦Bonds maturing 1968-72

of revenues

from national forests,

1963

:

1966

i%%
l3/4
13/4
l3/4
1
%
l3/4
13/4

$1,300,000

100

000 acres of forest and other

;

Due

Rate

Due

,

^

Price to

Coupon

1,300,000

Rute

$1,100,000

./

Price to

Am

or

1953

which

basis.

Kuile

pur¬

chased Alaska

from

lic

and

legal investments for Savings Banks and Trust Funds in

as

York, California and certain other States and for Savings Banks
Connecticut and will be

1916.

of

.

the first

pose,

-

1

.

opinion of counsel, interest payable by the State upon its bonds is exempt from all present Federal
State
of California Personal Income Taxes under existing statutes, regulations and court decisions.

of

bills

numerous

which

In the

Un¬

This

of California in
State

Treasurer, including the agent of the State. Treasurer in New York City. Coupon bonds in denomination
of $1,000 registcrahle only as to both principal and interest.
7 "'

^

of

land

is

■

promise and

■

August 1, 1953-72, incl.

Principal and semi-annual interest (February 1 and August 1) payable at the office of the Treasurer of the State
Sacramento, California, or at the option of the holder at the office of any duly authorized agent of the

"

.resources

Due

Dated August 1, 1951

author

proceeds derived from sale of seal
and sea-otter

skins, and 5% of the

'proceeds of net sales of remain¬
ing government land sold subse¬
quently to statehood.
Also the
State

to

is

receive

the

oil royalties, not otherwise
appropriated by Congress, to be
used to retire public debt.
Section 3, Third, of S.50 pro¬

vides; "That the debts and liabili¬
ties Of said Territory of Alaska
shall be assumed and paid by said
State ***."
(Similar to provision

2, Third, of New

sec.

The National City Bank

Harriman Ripley & Co.

The First Boston Corporation

Blyth&Co.,Inc.

The Chase National Bank

N.T-&S.A.of New York

Incorporated

'

.

proceeds

of any

of

Bank ofAmerica

HarrisTrust and Savings Bank
UnionSecurities Corporation

R.H.Mou'ton&Company AmericanTrust Company Glore, Forgan & Co. C.J.Devine&Co. Go!dman,Sachs&Co.

of Portland, Oregon

DeanWitter&Co.

Seci r.ty-First National Bank California Bank

Weeden&Co. The First National Bank Seattle-First National Bank

William R.Staats Co.

Los Angeles

of Los Angeles

*

Reynolds&Co.

Equitable Securities Corporation

•

B. J.Van Ingen & Co. Inc.

J.Barth&Co.

Incorporated

Mexico;

sec. 20, Third, of Arizona; sec. 4,
Third, of North Dakota, South Da¬
kota,, Montana, and Washington.)
Alaska is so large that almost
'

kind of climate and topog¬
raphy cai be found, but the popu¬
lar conception of Alaska as a land

Ccffin&Burr

A.C.Allyn and Company

Harris, Hall & Company

Incorporated

Incorporated

(Incorporated)

Otis&Co.

Ira Haupt&Co.

Kaiser&Co.

Barr Brothers & Co.

HeIler,Bruce & Co.

A.G.Becker & Co.
Incorporated

,

Bacon,Whipple & Co.

G.H.Wa'ker&Co. *

Hayden, Stone Co.

.

F.S.Smithers&Co.

•any

Shearson,Hammill&Co.

frozen

more

are

bors

in

"there
the

the

southern

Panhandle.

rivers

United

from

are

tip

and

States

the

the

of

of Memphis

har¬
than

Aleutians

This is due

W ood, Struther s & Co.

The First National Bank

E.F.Hutton 6 Company

Trust Company of Georgia

of snow and ice is incorrect. There

The Ohio Company

Schaffer, Necker & Co.

Andrews & Wells, Inc.

Wm. E. Pollock & Co., Inc.

-

Courts&to.

Julien Collins & Company

to

Alaska

largely to

Field, Richards & Co.

The National City Bank

Robert Winthrop & Co.

Hayden, Miller & Co.

Cruttenden &

•-

the influence of the Japanese cur¬
rent. The January mean tempera¬
ture of 20"

above

zero

in Anchor¬

of Cleveland

The National Bar k of Commerce

age compares to that of Concord,
The January mean of 33.6"

McCormick & Co.

Detmer & Co.

of Seattle

.,

.

Burns, Corbett &Pickard, Inc.

The Milwaukee Company
v

.

"N. H.

at Ketchikan is about the

New

York,

,

Ketchikan's

low of 8" below
the

record

D. C.

zero

low

same

as

H.V. Sattley & Co., Inc.

R. D.White & Company

Fulton, ReidS Co.

Northwestern National Bank

record

of Minneapolis

Scott, Horner & Mason, Inc.

....

,

.

approximates

for

Washington,

ClementA. Evans & Company

and is considerably warmer

Incorporated

Janney & Co.

Lawson, Levy & Williams

Laird, Bissell & Meeds

""

*

.

Rockland-Atlas National Bank
-.-vof Boston

,

.than the record cold in such cities

Chicago

as

Boston.

and

Ketchi¬

Bosworth, Sullivan & Company, Inc.

Prescott&Co.

Peoples National Bank

kan's all-time high is 96"; Juneau,

89°;

Fairbanks, 99".
Alaska
has long hours of summer day¬
light and, conversely, the short

Ginther & Company

Foster & Marshall

Sills, FairmanS Harris
Incorporated

Charlottesville, Va.

and

.

J. B.Hanauer&Co.

-

Taylor and Company

A. G. Edwards & Sons

v

Wurts, Dulles & Co.

Stone & Youngbsrg

Davis, Skaggs & Co.

'winter days.
The population of Alaska in 1950

.

was

128,643 (of which 33,000

Continued

; ♦The

Seasongood & Mayer

The Weil, Roth & Irving Co.

Doll & Isphording, Inc.

The Continental National Bank and Trust Company

.

of Salt Lake City

were

on page

35

who is connected with
& Co., New York City, is a
mechanical
engineer,
Cornell

Kenower,MacArthur&Co.

Stubbs, Smith & Lombardo, Inc.

Magnus&Ccmpahy

Walter, Woody & Heimerdinger

Thornton, Mohr&Co.

writer,

Hallgarten
graduate

University.

He

gineering

and

for

years

many

has

been

engaged in

en¬

Stern, Frank, Meyer & Fox

Fred D. Blake & Co.

H.E.Work&Co.

•

Walston, Hoffman & Goodwin

Kcoier&Fay

the investment
business
and is a member of the

*

Cornell

York

Engineering Society and the New
of Security Analysts.

Wagenseller & Durst, Inc.

Society




July

12,

1951

William D. James Company

C. N.White & Co.

* *

The Commercial and Financial

.

_

8

(loo)

Chronicle

|

Co.—Bulletin—"Remer, Mitchell & Reitzel, Inc.,
Street, Chicago 4, 111.

W. R. Grace &

298 South La Salle

Dealer-Broker Investment

Thursday, July 12, 1951

...

-

.

COMING

Hoving Corp.—Circular—J. F. Reilly & Co., Inc., 61 Broadway,
New York 6, N. Y.
Also available are circulars on Maryland
Drydock and Mexican Gulf Sulphur.

EVENTS
In

Field

Investment

Kropp Forge Company—Bulletin—O. B. Motter & Associates,
500 Fifth Avenue, New

It

i«

will be pleased

understood that the firms mentioned
send interested parties

to

King Manganese

Magma

following literature.'

the

"Information Please!"—Brochure

'

&

Plomh

,

% New York
&

explaining about put-and-call

Puget
Ill

which

stocks

Cement Company

memorandum

Union

Pine Street,

—

Association

Teleprompter
52

Wall

Also available ii

Union

,of

Trust

Co.—Memorandum—David

Noyes &

A.

&

&

Dallas

umbus

Street, New York 5, N. Y.
Gas

Pipe

Line

Africa—Memorandum—Chemical

M.

Selected

Bank

Byllesby

and

&

Company,

Haisey,

♦

♦

&

&

Line
is

Products Co. and

an
a

analysis

of

International

special report

The National Security Traders Association, Inc., through its
President, John F. Egan, First California Company, San Fran¬
cisco, has announced that this organization directly and through
its 3(1 regional groups .are endorsing And introducing to their 4,000
individual members a proposed new educational program directed
toward all groups of the American people to explain the necessity
for thrift and savings and the advantages of becoming owners of
the stocks of American business and industrial corporations on a
prudent basis.

Celfucotton

Bank of America.

on

Bros. &

Also available is
on

a

General Precision

•

Lines—Report—Joseph Mayr & Company, 50 Broad
Also

available

is

a

report

Inc.—Memorandum—Kidder,

Pea-

body & Co., 17 Wall Street, New York 5, N. Y.

Co.—Memorandum—Shaskan

change Place, New York 5, N. Y.
randa

on

North

American

&

Co., 40

Also available

are

Ex¬

memo¬

Aviation, A. O. Smith Co.,

Youngstown Sheet & Tube Co.

and

c

G^rriel Coloration—Bulletin—H. E. Herrman
Wall

&

Cohen,

14

Street, New York 5, N. Y.

Our most recent issue of "HIGHLIGHTS"
comments

Mansfield

Tire

Polaroid

&

Rubber

For

on

Mission Oil
Suburban

Machine

&

Banks, Brokers and Dealers,

Propane Gas

Welder
Copy

on

request

Troster, Singer & Co.
Members:

74

N.

Y.

Security

Dealers

Association

HA

2-2400.

Teletype

Private wires

Cleveland-Denver-Detroit-Los




of

and

Political

Education

is

a

Regular redemption

at

prices from 101.75%
Minnesota

name

The

<

non¬

today.
The proposed program will consist in making available at
frequent intervals feature articles by outstanding financial writers
and economists and educators for regular use by industrial house
organs and the national farm, labor, and country press.
The
Institute will also undertake the preparation of special articles
for magazines, programs for radio and television, material for in¬
dividual
and
group
lectures and public speeches, maintain a
speakers' bureau, publish special pamphlets, and conduct surveys
and independent studies pertaining to various phases of savings
and investment and monetary and fiscal policies and problems.

NY

1-376;

377;

announcing this program, Mr. Egan stated that, "In the
past two decades, the wealth of the people has been largely re¬
distributed
to
an
entirely new
group.
These new 'middlemillions' for the most part are not informed nor are they aware
of their new responsibilities for putting some of this new wealth
into the stocks of American business enterprises in order that the
government will not ultimately be forced to put up the capital
needed for business expansion. These groups want to know why
direct

378

to

Angeles-Philadelphia-Plttsburgh-St.

owners

"For

Louis

the

and

invest

several

par.

Light Co.

was

Duluth

as

adopted

is

company

a

in

public

1923.
utility

operating only within the State
of Minnesota, with the exception
that it has an interchange agree¬
ment with a subsidiary, Superior
Water, Light & Power Co. of Su¬
perior, Wis., under which electric

is

interchanged with

in the generation,
mission

that

The company is engaged

and

purchase, trans¬

distribution

of

elec¬

tricity in an area covering some
7,500 square miles, and having an
estimated population of 315,000.

With
(Special

Clayton Securities
to The Financial Chronicle)

BOSTON,

Mass.

—

Donald

F.

Thayer has become associated with
Clayton

Securities
Corp.,
Street,
members

Devonshire

the Midwest Stock Exchange.

formerly

was

Research

with

82
of

He

Investment

Corporation

and

J.

Arthur Warner & Co. Prior there¬
he

to

was

Boston

manager

for

With Hunneweli Cov

i

(Special to The Financial Chronicle)

and how to become

BOSTON,

of corporations on a prudent basis.

past

1906

organized in

to

&

Power

Edison Electric Co. and the pres¬

company.

save

prices

from 104.75% to par, and
special redemptions may be made

power

their self-interest to

and funds

reserves

range

Enterprise, the assumption being that
a stockholder is a Capitalist and consequently not prone to accept
the principles of collectivism which is so prevalent in the world

is to

the

of common stock.

a

Fiscal

earnings,

in the furtherance of Free

■

it

Trinity Place, New York 6, N. Y.

Telephone:

Institute

The

expects to

company

secured late in 1950 from the sale

In

Corp.

Federal

rent

profit, educational organization and is conducting this program

Durez Plastics & Chemicals,

Kodak

:

ent

on

The

1953.

was

as

used to finance in

be

company's construction
which contemplates ex¬

sale of these bonds, and from cur¬

is being initiated by the Peoples Savings and

University, Chairman; Robert S. Byfield, Trustee of Town
Hall, Security Analyst, Lecturer and Author; James J. Caffrey,
Attorney, former Chairman Securities and Exchange Commission;
Dr. Alexander S. Lipseit, Labor Economist and Editor of "Inter¬
national Labor News Service; Dr. Felix Morley, former President
Haverford College, Washington Correspondent, "Barron's"; and
Paul J. Herold, Secretary-Editor.

Audio Devices, Inc.—Analysis—Peter
Morgan & Co., 31 Nassau
Street, New York 5, N. Y.
*

Y,

in

Yale

Jessop Steel Co.

Street, New York 4, N.
Drewry's Limited.

competitive sale
bid of 101.019%.
./

finance this program through

special project of the Institute of Fiscal
and Political Education, under the direction of a special policy
committee comprised of O. Glenn Saxon, professor of economics,

Transport, Inc.—Analysis—Cohu & Co., 1 Wall
Street, New York 5, N. Y. Also available is a memorandum

Eastman

The program

Investment Service
&

Associated

Delta Air

award of

won

at

pansion of facilities entailing the
expenditure of $5,533,000 in 1951,
$10,381,000 in 1952 and $6,308,000

NSTA Endorses Educational Program

Hoffman

Company—Analysis—Sutro

a

will

the

part

Co., Inc.—Analytical brochure—Morgan
Stanley & Co., 2 Wall Street, New York 5, N. Y.

■

on

program

Company—Bulletin—Walston

group

bonds

bonds

1342

•

Co., 120 Broadway, New York 5, N. Y.
memorandum on Sunray Oil
Corp., and
Equipment Corp.
I

on

and

Proceeds from the sale of these

Corporation—Analysis—Hornblower

American Power & Light

Anderson, Clayton

Inc.

101.749% and accrued in¬

July 10

Goodwin, 265 Montgomery Street, San Farncisco 4, Calif.
available

Co.

&

are

The

these

Weeks, 40 Wall Street, New York 5, N. Y.

Also

*

Dye

at

terest.

Corp.—Analysis—Raymond & Co., 148 State Street,

Barge

*

'

.

offering $10,000,000
Light Co. first
mortgage bonds, 35/s% series due

M.

Boston 9, Massachusetts.

American

.

Minnesota Power &

Walnut Street, Philadelphia 7, Pa.

&

Stuart

associates

1981

Value Selections for July—Circular—Newburger & Co.,

Chemical

Holly-

•

■

Haisey, Stuart Group %
Offers Utility Bonds

Dillon

Timing Factor—Explanatory folder on stock timing with free
samples of complete service—$1.00—Dept. B, Analyst Insti¬
tute, 126 Lexington Avenue, New York 16, N. Y.

Allied

••••■•

.v.-

.

Stocks With International Interests—Bulletin—A.

Aerovox

(Hollywood

wood Beach Hotel.

Kidder & Co., 1 Wall Street, New York 5, N. Y.

r

Col¬

annual

Club

Investment Bankers Association

Co., 165 Broadway, New York 15, N. Y.

Company—Analysis—H.

As¬

Day outing.

Annual Convention at the

Corporation—Analysis—Hol-

Calls—Booklet—Filer, Schmidt & Co., 30 Pine Street,

New York 5, N. Y.

■'

Beach, Fla.)

Incorporated, 1500 Chestnut Street, Philadelphia 2, Pa.

4, New York.

.

(Dallas, Tex.)

Bond

Nov. 25-30, 1951

Corporation—Analysis—L. H. Rothchild & Co.,

Co., New York 5, N. Y„

Warner

National Quotation Bureau, Inc., 46 Front Street, New York

:.

,

Security Traders

Oct. 12, 1951

Co., 30

123 South

United States Plywood Corp.—Memorandum—Eastman,

stocks used in the National Quotation Bureau
Averages, both
as to yield and market
performance over an 11-year period-

.■

sociation Convention opens at Co¬
ronado Hotel.

New York 5, N. Y.

South

J;

Calif.)
National

ton, Hull & Co., 210 West Seventh Street, Los Angeles 14,
California.

Over-the-Counter Index—Booklet showing an up-to-date com¬
parison between the 30 listed industrial stocks used in the
Dow-Jones Averages and the 35 over-the-counter industrial

■? i :■>•

■

Sept. 30, 1951 (Coronado Beach*

Lerner &

—

Gear Grinding Machine Co. and on Senecft

on

Gas

Transcontinental

Averaging."

of Stock Exchange
Meeting at the Terrace-

Plaza Hotel.
■

Card memorandum

Teleprompler Corp.—Analysis—Coffin, Betz & Co.,
Broad Street. Philadelphia 9, Pa.

"Dollar

for

Co.,

Haupt

Corporation—Bulletin—Stanley Heller

Studebaker

Report—Laird, Bissell

candidates

are

&

Sept. 24-26,1951 (Cincinnati,Ohio)

621

Firms Fall

Light—Review—Ira

and

outing at the New York

Athletic Club

Co., 203 South La Salic Street. Chicago 4, 111.

Situation—Appraisal—Francis I. du Pont & Co., 1 Wall
Street, New York 5, N. Y. Also available is a brief article on
the Utilities, a list of Potentialities in Railroad Income Bonds

Puts &

Power

/(

Stocks—Special

&

Co.,

&

Richards

(New York City)

Broadway, New York 6, N. Y.

Southern

Earnings—Preliminary figures for first half
Hanseatic Corporation, 120 Broadway,

of

Parker

New York

Falls Machine Co.

Oil

lists

Sound

the

at

Security Traders Association of

Auchincloss,

Co., 10 Post Office Square, Boston 9, Mass.
a

York

City Bank

two

—

Ding"

"Fling

Sept. 7, 1951

.

Spring Street, Los Angeles 14, Calif.

Riverside

Meeds, 120 Broadway, New York 5, N. Y.

and

Memorandum

Dealers

Mauh-Nah-Tee-See Country Club.

Company—Analysis—Filor Bullard

Company—Analysis—Hill

Tool

South

5, N. Y.

—

V

(Rockford, 111.)

Securities

Association

Redpath, 52 Wall Street, New York 5, N. Y. Also available
is a memorandum on Youngstown Sheet & Tube Co.

Bonds—Supplement to "Local Housing
Authority Bonds and Notes"—C. J. Devine & Co., 48 Wall
Street, New York 5, N. Y.

New York

Petroleum

annual

Detroit

Country Club, Sandwich, Ont.

Aug. 23, 1951

Securities

Corp.—Memorandum—First

Smyth, 39 Broadway, New York 6, N. Y.

Phillips

New Housing Authority

Bank

Car

of

golf party at Essex Golf

summer

and

(Detroit, Mich.)

1951
Club

Rockford

Eastern Railroad

Peoria &

Japanese Cement Companies—Review in current issue of "In¬
vestors Beacon"—Nomura Securities Co., Ltd., Tokyo, Japan.

1951—New

Rubber—Report in current issue of "High¬

Co., 134 South La Salle Street, Chicago 3, 111.

New York.

of

American

North

20,

Bond

Suburban Propane Gas.,

options—Thomas, Haab & Botts, 50 Broadway, New York 4,

New York

&

July

|

lights"—Troster, Singer & Co., 74 Trinity Place, New York
6, N. Y.
In the same issue are reports on Federal Machine
& Welder, Polaroid Corporation, Mission Oil Company and

clear reproduc¬
tions of 1,001 charts complete with dividend records for the
full year of 1950, showing monthly highs, lows, earning!,
capitalizations, volume on virtually every active stock on the
New York Stock and Curb Exchanges—single copy $10.00;
yearly (6* revised issues) $50.00—special offer of three edi¬
tions of Graphic Stocks, 1924 through 1935; 1936 through 1947
and up-to-date current edition, all for $25.00—F. W. Stephen!,
15 William Street, New York 5, N. Y.
Guaranteed
Railroad
Stocks—Analysis in current issue of
"Railroad and ether Quotations"—B. W. Pizzini & Co., Inc.,
Graphic Stocks—January issue contains large,

Street, New York 4, N. Y.

Co.—Circular—Weber-Milli-

Mining

Co., 50 Broadway, New York 4, N. Y.

can

Mansfield Tire

25 Broad

York 13, N. Y.

leaders in financial, industrial,
and economic circles have preached the need for a broad program
years

Continued

on

page

10

Mass.

—

Irving

I.

Magid is with Hunneweli & Co.,
136 Federal
Street, members of
the

New

York

Exchanges.

and

Boston

Stock

v

(157)
Volume 174

Number 5028

.

.

.

The Commercial and Financial

Chronicle

:S\ *■■
"J*

•? *

ii
"«*'■

'-.ft

g*mx#*

NATIONAL

STEELH

k

CORPORATION.

STEEL

LAKES

GREAT

STEEL

NATIONAL

OF

DIVISIONS

MAJOR

Detroit,

Michigan. The only integrated steel mill in the
Detroit area. Produces a wide range of carbon
steel

Its Great Lakes

Steel Corporation

in America's great

serves

American industry

automotive center

products

...

is

a

major supplier of all

of steel for the automotive industry.

types

WEIRTON

Mills at Weirton,

STEEL COMPANY.

Virginia, and Steubenville, Ohio. World's

West

largest independent manufacturer of tin plate.

Great Lakes Steel
area,

Detroit
America's mighty automotive industry in both

Corporation, with the only integrated steel mill in the

is the natural companion to

production and location.

steel

production needs.

of other important

range

DIVISION.

Unit of Great Lakes

Ecorse, Michigan,
Exclusive manufac¬
buildings and

Steel Corporation. Plants at
and Terre Haute, Indiana.

world-famed

of

turer

Stran-Steel

nailable

Quonset

framing.

HANNA IRON ORE COMPANY,

Produces

And Great Lakes Steel serves a

wide

range

of other industries throughout America

home appliances, electrical equip¬
ment, to name just a few. It has developed special steels, including famous N-A-X
High-Tensile
.
is the exclusive manufacturer of world-acclaimed Quonset

—building, rail and highway transportation,

.

wide

a

products.

STRAN-STEEL

facilities—blast furnaces, open hearth Furnaces, hot strip and sheet
mills, merchant mills, cold mills—enable Great Lakes Steel to furnish auto makers
and their suppliers with a large volume and variety of finished steel for their,

Its complete

tremendous

Producer of

.

Lakes

ore

THE

Great

participat¬
Labrador-Quebec

region. National Steel is also

ing in the development of new
iron

Cleveland, Ohio.

from extensive holdings in

ore

fields.

HANNA

FURNACE

CORPORATION.

furnace division located in

Blast

Buffalo, New York.

Buildings and Stran-Steel framing.

of Great Lakes Steel—one of National's seven principal subsidiariesreason why Natiohal Steel is one of America's largest producers of

The progress
is another
steel

.

.

.

why it will continue to grow in the

future.

NATIONAL

MINES CORPORATION.

lurgical coal for National's tremendous

NATIONAL STEEL PRODUCTS

NATIONAL STEEL
GRANT BUILDING

SERVING




AMERICA

BY

SERVING

CORPORATION

AMERICAN

Texas.

built by
208,425 square
distribution of steel

the Stran-Steel Division, coven

products throughout Southwest.

INDUSTRY

needs.

COMPANY, Houston,

Recently erected warehouse,

feet. Provides facilities for

PITTSBURGH, PA.

Coal mines

properties in Pennsylvania, West Vir¬
ginia and Kentucky. Supplies high grade metal¬

and

9

:

>

;''? •*?, •,?

-(

The Commercial and Financial Chronicle
10

.

.

Thursday, July 12, 1951

.

(158)

Bache & Go. Exhibit Shows Brokerage House

Old-Age Benefits
1

in Action

BABSON

By ROGER W.

and is now eligible
month, Mr. Babson
says inflation may not be so bad, since contribution to the
payroll tax by employees is in instalments, and thus the pay¬

Noting that he has reached 76 years of age
a tax-exempt old age pension of $80 per

f

to

ments

depreciated dollars.

in

are

I use this same argument to
cheer up life insurance salesmen
who are troubled as to what the
calls to my attention that in view value of the dollar will be 20
years hence.
I assure them that
of my age and
July 6 was my birthday and my
accountant has given me

trusted
a

nice birthday present. He

very

the

more

stalments

old-age insur¬
ance
of $80

that

states

lar.

Hence, considering all things,

continue

can

to

declining value of the dol¬

to the

persons who
are 75 or over

i

dollars.

depreciated

with

extent

Furthermore, remember that your
increase in salary is largely due

further

He

also will be paid to a large

they

month.

per

premiums are paid in in¬
from now until then,

the

if

receive

can

the dollar may be mucn
depreciated at that time, yet,

though

being off
payroll, I

now

you

and

you

will not suffer so much as
think you may and perhaps

work

draw

old-age
benefits.
I,

like other

ployed

not at all.

In
Roger W. Babson

have had

sons,

money
^
"*

de~

from

ducted

of Taxation

Speaking

em¬

per¬

v

•

i

friend

accountant

to

to

read

my

over,

that I add "When a
reaches 65 and becomes

he suggested
•'u6bc"vcu

check since

pay

my

column

this

giving

person

11937, but I gave this no attention, eiigjble for old-age insurance
that the amount re- benefits, his wife is also entitled

,f believing

insignificant.

be

would

iceived

quickly the

jlBut considering how

older,

by as we get

months speed

pretty

i$80 coming so often looks

jjgood.
ij But the above is not the best of
it. This $80 per month which an
it eligible
person receives is nonlj taxable. If he happens to be in
.

lithe 50%
j equivalent

to

is

this

bracket,

tax

check

every
J month of $160, which certainly is
•not to be sneezed at.
When the
deduction from our pay checks
a

l0

benefits provided

his

one_half

10,000 educators dur¬

part

something worth looking up; also Exchange,

was

Columbia Univer¬
sity's 27th annual summer session

of

campaign

a

various

explain

to

Wall Street to the general

covered in the exhibit.

public.

Summer

The

Columbia's educational exhibit

Session

Educa¬

tional Exhibit is held annually by

by Bache officials as

chosen

they are pur¬
Typical yields of
selected
companies
are

chased and sold.

izing for Defense" as a theme, is

g^e js ajso g5 or over and its not ing the next two weeks by means
enti tlod to higher benefits based of an exhibit of Bache &
Co.,
on
her own earnings."
This is members of the New York Stock
at

ties and explain how

exhibit, which has "Mobil¬

The

brokerage house in action will

A

be shown to

an
ideal
place^to reach a good Columbia University to show the
the taxable feature of life insureducational
methods
and
The
Bache cross-section of this group. Rep¬ latest
For instance, when I took educational exhibit.
out, as a young man, $40,000 exhibit, located in the Main Gym¬ resentatives of Bache & Co. will techniques to educators. About
worth of life insurance, the agent nasium at Columbia's University be on hand at all times during the 10,000 teachers from all parts of
told me that this first $4G,000 was Hall, utilizes a live New York two week run of the exhibition to the United States and many for¬
exempt from taxation. I now find Stock Exchange ticker and a live explain the so-called mysteries of eign countries are expected to at¬
the
securities
industry.
Charts,
that if I pay the premium and
tend this year's session which will
business news wire to dramatize
diagrams
and
photographs
are
own the policies completely, my
utilized to show yields of securi¬ continue through July 20. 5
life insurance money will be sub- the story of brokerage activities.

ance.

„

jwas increased Jan. 1, .1950, we ject to the Federal Estate Tax the
of

kind

were

it.

about

sore

We

forgot that Social Security benefits were likewise increased. Un-

family

i

-

amendments a
receive as much as

year's

last

der

can

opposed to.the
old maximum of $1,020.

$1,000

per year as

f'

XT

Inflation May N

|
I

i

t

nn_„

~

rnake
man

bonds,

or

to this extent:
insurance

does

a

your

The

death,

money

it is
in

not

such

a

on

account

could
'

be

a

of

to you

use

This

inflation.

serious

affair

if

we

paid for these benefits in one
lump sum. Readers, however, will

now

stuff.

There

are

other technicali-

NSTA Notes

Piper, Jaffray Go.
to The Financial Chronicle)

(Special

wife (or to a trustee under
certain
conditions)
within
13
your

taxable.

won't be much

Donald W, Green With Co"tirm"c'from ™ge 8

married
If the proceeds
is payable
to

exception for

an

0f

1948

Act of

Revenue

months of

j.

*>

The

Some of the pessimists who are case, however, must be subject
always
knocking
Truman
and to her sole control. The above
talking about inflation say that means that my readers should imthe purchasing power of your old- mediately
talk
their, insurance
age insurance benefits in the years over with an agent that knows his
ahead

j

.

stocks

same as

MINNEAPOLIS, Minn.—Donald
W.

has

Green

with
115

of

Seventh

the

west Stock

has

In

the

Street, mem¬

New York

Exchanges.

recently been

vestors

associated

of

past he

Mr. Green

officer of In¬

an

Diversified

Mid¬

and

The

main

thing

to

Services,

was

a

Inc.

E. D. Flather

\ not be doing this. If your Social ance to do as .she wishes with, it
;> Securily
benefits when they are will probably be exempt up to
paid will be in depreciated dol- $40,000; but if you try to be too
lars, then the payments which are specific and state how the money
deducted from your pay check .
,
.
.
.
,
.
will also be in depreciated dollars,
s T°
Ubed' or g ve 11 10
at least so far as the average is beneficiaries, it may be subject to
,

D.

Flather is engaging

curities

business

from

offices

2220

Twentieth Street, N. W.

was

formerly

with

We feel that the program we

help materially in filling this need."

Lee

umnist,

Editorial

Kirkpatrick,

Staff,

Birmingham

Horace A.

"Post Herald";

of

Dean

Students,

Bethany

Arthur

College;

Bliss

Lane, Diplomat, former Ambassador; Harry G. Marquis, Secretary
and Treasurer; John Marshall, former First Assistant U. S. Attor¬

Edwin

in the

can

Hildreth, President Bucknell University; J. Hugh Jackson, Dean,
Graduate School of Business, Stanford University; Dr. Forrest H.

Opens
—

ownership.

stock

President Washington State College; Dr.
Coulter, former President N. D. and A. M. College,
Economist; Forrest Davis, Author, former Washington Editor,
"Saturday Evening Post"; Roger Faherty, Vice-President IrishAmerican Historical Society; John Temple Graves, Lecturer, Col¬

partner in

WASHINGTON, D. C.

in

introducing

Trustees of the Institute of Fiscal and Political Education are

John

re-

member is that if you give your
wife the proceeds of your insur-

now

Dr. Wilson M. Compton,

ties which I cannot cover in this Piper, Jaffray & Hopwood.
column.

education

are

Jaffray & Hopwood,

Piper,
South

bers

become

se¬

General; Dr. Felix Morley, former President of Haverford
Author; W. Royce Powell, Vice-President; Donald R.
Richberg, Lawyer and Author; Berkley A. Thomas, Executive
Vice-President; Gill Robb Wilson, Author and Columnist.

ney

at

College,

He

Auchincloss,

.

Parker &
&

taxation.

concerned.

Redpath and Stein Bros.

Security Traders Association of New York

Boyce.

The

Security

Traders Association of New York will hold
Sept. 7, at the New York Athletic Club.

their annual outing on

.

Merrill Lynch,

New

York, Chicago and St. Louis

Railroad

Equipment Trust of 1951

3% Equipment Trust Certificates
(Philadelphia Plan)

To be

mature

$65,000 each January 15 and July 15, 1952 to 1966, inclusive

guaranteed unconditionally as to payment of par value and dividends by
The New York, Chicago and St. Louis Railroad Company

the

in

Board

of

Trade

Chicago

Firm Name Now Is

CHICAGO, 111.—Homer P. Har-

managing partner in Chi¬
of
Merrill Lynch, Pierce,
Fenner & Beane, announced that

Renyx, Field & Go.

grave,
cago

Hunter

Goodrich, former manager

Archer, Da¬
who became

of Edgewater plant of

niels,

Midland

associated

Co.,

with

the firm

in

1950,

to

Chicago
to supervise Merrill Lynch's com¬
modity division in the Chicago
area. -'
;
'' .&• -VI - ;
V,

has

To

cated

Building.

$1,950,000

been

transferred

.

.

Mr.

Goodiich

was

with Archer,

Midland
approximately 25

Company for
years and was
closely associated with the growth
and development of their Soybean
and soybean products division.
The firm's commodity division

firm

The
Leader

been

name

Sales

changed

to

Company, Inc.
other

of

Corporate

Company,

Inc.

has

Renyx, Field

There has been

&
no

change in the firm which is

located at 527 Fifth
York

Avenue, New

City.
......

1

1

Robert J. Henderson Is

Daniels,-

Priced

to

Issuance and sale

yield 2.25%

of these Certificates

are

to 3.10%,

according to maturity

subject to authorization by the Interstate Commerce Commission.

With Daniel Reeves Co.
(Special to The Financial Chronicle)

BEVERLY HILLS, Calif.—Rob¬
ert

J.

Henderson has become

as¬

all commodi¬ sociated with Daniel Reeves & Co.,
ties traded in on future markets, 398 South Beverly Drive, mem¬
also cash and' spot * commodities bers of the' New York and Los
such as all edible fats and oils, Angeles
Stock Exchanges.
Mr.

in Chicago embraces

HALSEY, STUART & CO. Inc.

McMASTER HUTCHINSON & CO.

-

f I

i

•

July 5, 1951

/..•




-

fresh meats and

Henderson

feed stuffs.

The firm's Chicago office is

lo-

was

an

officer of Ed¬

ward J. Bourbeau &

Co.

Number 5028

Volume 174

;

.

.

The Commercial and Financial

EINZIG

the likelihood of a considerably larger finan¬
capital investment in Britain in 1951, due to
higher costs and rearmament expenditure, Dr. Einzig expresses
view total of investment will exceed savings, and therefore,
In pointing out

cial outlay on

there will be

%

inflationary gap.
working hours and greater output to

expansion of the current

an

of longer

need

—

Sees
offset

Swiss Bank Corporation, Basle,

degree that actual
conformed to the program.

position to ensure to some

however, no capital investment pro¬
has been published. The Chancellor of

will

have

capital

of

authorized

an

$2,000,000

gram

The

corporation

act
as

as

start

dealers

share

(Canadian)

operations. Aug.
is

authorized

1.
to

investments and

in

the

and

expanding,

corporation. J. W.

comprises Messrs. Gunther,

Kraft and J. A. Noonan.

Exchange Firms to
Hold Fall Meeting
The Board of Governors of the

York

H.

Gunther,

senior New

agent of Swiss

York and London.

The

new

ven¬

ture is the outcome of careful

in¬

vestigation by Swiss Bank Cor¬
poration, Basle. Without entering
the

field

of

commercial

1951, it
M.

was

announced by Joseph

Scribner,

Singer,

Dean

banking

In

addition

to

Canada, The Swiss Bank Cor¬
poration feels that there is scope

ness

sessions,

Senator Robert

usual

the

Cor¬

Bank

poration, has been elected Presi¬

for

within the frame¬

expansion

work

of

the

Canadian

economy.

Taft will be the
at

a

dinner

on

Monday, Sept. 24.

is expected
This announcement is not

offer to sell or a solicitation of an offer to buy these
offering is made only by the Prospectus.

an

The

securities.

involved were calculated on

$10,000,000

the basis of prices

This means the creation of a corresponding
purchasing power. At the game time the vol¬
will decline, not only owing to the in¬
crease in the amount of
capital investment—which is relatively
moderate—but also owing to switching over of production from
in 1951 than in 1950.

Minnesota Power &

amount of additional

Light Company

of consumer goods

ume

materials.

civilian goods to war

exceeds
that of 1950 the inflationary gap will widen, for there is no hope
to cover the additional investment by additional net savings.
On
the contrary, dis-saving is proceeding on a fairly substantial scale.
This is not at all surprising, since we are in a period of price
inflation. If the rise in prices had been due to an expansion of
purchasing power there might be no decline in net sayings. Since,
however, prices have risen without any corresponding previous
rise in purchasing power, the consumers have to draw on their
old savings in order to be able to pay the higher prices. Thus, in
addition to the inflationary effects of increased capital investment,
To the extent to which

this year's capital investment

over

a

savings is liable to produce a

Due July 1,198i

The

an

and

accrued interest

Price 101.749%

Prospectus may be obtained in any State in which this announcement is circulatedfrom only
of the undersigned and other dealers as may lawfully offer these securities in such State.

such

HALSEY, STUART & CO. Inc.

of investment
particularly strong inflationary

time of over-full employment

Bonds, 3/8% Series due 1981

July 1, 1951

effects of dis-saving.

Britain has to face the inflationary
At

First Mortgage
Dated

excess

purchasing power and the de¬
cline in the volume of consumer goods, the additional competition
for the labor resources available tends to strengthen further the
bargaining power of workers. This is liable to lead to an accelera¬
tion of the rise in wages.
Already there are symptoms of an
accentuation of competitive bidding for- labor. Thie British rail¬
roads have been losing many thousands of skilled and unskilled
hands because industrial firms are in a position to offer higher
wages'. The addition must be substantial in order to induce the
railroad employees to relinquish their permanent jobs and the pen¬
sion benefits attached to them. Owing to the rising price* and the
urgency of demand, manufacturers are in a position to offer suffi¬
ciently tempting inducement. The result is a curtailment of rail¬
road traffic. A solution would be a restoration of prewar working
conditions.
Even now the number of workers employed by the
railroads is well above prewar figure. But shorter working hours,
holidays, etc., made it necessary to employ many more men than

DICK &

SCHOELLKOPF, HUTTON &, POMEROY, INC.

MERLE-SMITH

Apart from the increase of

effect.

conditions would
In the
circumstances the only practicable solution will be a further in¬
crease of wages, which would necessitate higher fares and freight
rates, resulting in an all-round increase of the cost of living and

before the

HIRSCH

GREGORY &. SON

&, CO.

WEEDEN

& CO.

INCORPORATED

INCORPORATED

NEW

YORK

WM. E. POLLOCK & CO., INC.

HANSEATIC CORPORATION

JULIEN COLLINS & COMPANY

GREEN, ELLIS & ANDERSON
THE

HELLER, BRUCE & CO.

ROBINSON-HUMPHREY COMPANY, INC.

THOMAS &, COMPANY

MULLANEY, WELLS & COMPANY
A. M. KIDDER & CO.

BYRD BROTHERS

ASPDEN, ROBINSON & CO.

SHAUGHNESSY &. COMPANY, INC.

July 12, 1951

.

The result of a return to prewar

war.

be that even more men would want to

leave the raliroads.

This announcement is not

offer to sell or a solicitation of an offer to buy these
offering is ?nade only by the Prospectus.

an

The

securities.

the cost of production.
Yet

even

now

the

government appears to have failed to see

$5,000,000

A realistic government would have ruthlessly
cut down the capital investment program in spite of the additional
requirements for rearmament purposes. It is true, some kinds of
investments such as the construction of power stations cannot be
the danger signal.

Iowa Public Service

But there are many kinds
public works which could and should have been cut down much
more drastically than they have been cut down.
Nor is a reduction
curtailed without grave disadvantages.
of

capital investment the only method of disinflating or of resist¬
Under the influence of Keynes' theory, Brit¬
ish economists are inclined to take a very one-sided view of this

First Mortgage

of

Company

Bonds, 3XA% Series due 1981

ing further inflation.

subject. In

a

Due

July 1, 1951

July 1,1981

restric¬
they would

recent article R. F. Harrod argued that credit

tions would not be disinflationary except in so
curtail

Dated

investment.

capital

far

as

reality restrictions of consumers'

In

credits would produce an even more directly

Price 100.57% and accrued interest

disinflationary effect

than cuts in capital investment.
The government

interest rates

or

remains reluctant to take active steps to raise

to curtail credits

to any

considerable degree.

In

spite of the growing evidence of over-full employment the fears
that any
ment

the

drastic disinflationary

continue

authorities

to

in

as

far

as

to

position to

even

exceed

as

the

go

a

very

a

a

whole is concerned.

HALSEY, STUART & CO. INC.

The danger is

of

unemployed,

in

regions there might develop large-scale unemployment.




Yet

whole the number of vacancies would

number

undersigned.

long way towards

removing over-full employment, at any

the country as

that, while in Britain
continue

a

Copies of the Prospectus may be obtained from the

might create unemploy¬

paralyze effective disinflationary action.

are

disinflation without
rate

measures

particular

Owing to

July 11,1951

busi¬

A.

principal speaker

available for the purpose.
The amounts

&

Scribner, Pittsburgh, President.

investment.

prevailing at the end of 1950. In the meantime
costs have increased considerably and are expected to increase
further during the second half of the year. As'a result the finan¬
cial outlay on capital investment is likely to be considerably larger

in

in

general financial agents.
Frank

slightly higher in 1951 than it was in
1950, the total of civilian investments will be
substantially lower, for rearmament require¬
ments will absorb a large part of the resources

£inzi«

con¬

Canada, the bank said.

be

to

Dr. Paul

be

move

Association
of
Stock
Exchange
incorporation of a Canadian Building, 360 St. James Street,
Firms will hold its Fall Meeting
company
with the title "Swiss West, Montreal, Canada.
Swiss Bank Corporation main¬ at the Terrace-Plaza Hotel, Cin¬
Corporation For Canadian Investmest, Ltd." The new corporation tains foreign offices in both New
cinnati, Ohio, Sept. 24, 25 and 26,

will

spect of various types of capital
Although the total of investments

may

important

an

the

and

made a brief statement in
which he explained that owing to uncertain¬
ties created by rearmament and raw material
shortages it was impossible to compile any
reliable detailed estimates. He gave the broad
outlines of the government's intentions in re¬

as

world

old

the largest of the Swiss commer¬
The corporation's headquarters
cial banks, announced yesterday will be located in The Royal Bank

This year,

Exchequer

the

strengthening the ties between the

dent and A. Engelbert, Secretary
and Treasurer.
The board of di¬
rectors

capital goods was forecast. Since building operations in Britain
are subject to license the government was in a

the

sidered

economy of
new

of

one

Kraft has been elected Vice-Presi¬

Canadian Investments

LONDON, England. — Ever since 1948 the British Treasury
published each year a detailed program of capital investment, in
which the amount of public works and of private construction of

capital investment

dent of the

Swiss Corp, For

is

capital, this

currency

;
.

Switzerland

11

few countries able to expert hard

■

^

this trend.

ffjf

Since

housing difficulties labor in Britain is very immobile. It is almost
impossible to transfer the unemployed from one district to another,
for lack of housing accommodation. This is one of the reasons why
drastic disinflationary measures are avoided, for fear that, as a
result, unemployment and over-full employment would run con¬
currently.
".f;,-" ■"

Britain's Investment Program
By PAUL

(159)

Chronicle

12

The Commercial and Financial Chronicle

(160)

"It

is

Urges Higher Interest

opinion

Lehigh Valley's New Look

Department

type of savings
especially to ap¬

new

a

designed

By HUBERT F. ATWATER

peal to moderate income families
and
carrying
an
interest
rate

on

the

above

American Federation of Labor President, William Green, says
it would encourage savings and be effective anti-inflation move.

J

Treasury

should issue
bond

considered

our

the

that

bond.

2.9%

We

Gammack & Co.,

of the present E

that this

suggest

a

higher

a

families

to

to

Even

Secretary

substantial

Greco

William

not

the American Federation of Labor

in the development of an

effective

to persuade the Ameri¬
people to save a larger part

program

their income.

the

"Since

not

and

51%

63%
of
skilled workers,

workers,
and

clerical

of

"War, the A. F. of L. has argued

workers "do not

for

and

sales

ings bonds at all.

comprehensive,; well-

a

anti-inflation

rounded,
"We

have

•controls

supported

program.

direct

price

absolutely essential to

as

restrain the mounting cost of liv¬

ing

and

However,
tained
our

exorbitant
have

we

that

ing

an

credit

controls

must

economy

tax

and

an

over

suppli-

be

measures

equitable

controls,

includ¬

program,

effective

savings program.
importance of a savings
program becomes clear when we
that

from

determined
small

but

families
effort

present indica¬

tions the tax program

which Con¬

any

regular
savings.

as

sav¬

to

per¬

to

make

"It

must

savings

is

be

aside

a

of

part

their

we

families

nificant,

bonds

cannot

May

1,

began

1951

is

E

war

maturing

rate

set for these

"During

the

past

few

months,

become quite clear that in¬

terest rates

on

low

make

in¬

any

sig¬

the

to

sav¬

living items.

income

moderate

needed

are

flation.

It

provide
which

in
is

most

the

will

whose

order

savings
in¬

stem

important

type

of

to

program

the-maximum

attract

of

to

savings

from

these

families.
"If

these

lowed,

suggestions
feel

we

American

people

grqatly
American

bor,

for

cooperate
to

make

certain

its

fol¬
the

will

respond

increased savings.
Federation of La¬

part,

in

is

every

such

are

that

a

prepared to
possible

way

program

a

com¬

plete success."

Two With

Merrill

Lynch

(Special to The Financial Chronicle)

bonds is very unattractive.

it has

expect

to

on

inadequate

very

process.

is absorbed

come

wjjth

millions of Series E

that

that

remembered

contribution

The

"Up to this time, no solution to
this
problem has been offered.
The new law designed to handle
the many

less

voluntary

a

Thus,

a

set

to

in

Some
than ten

while others might not be¬
due until 12, 15 or 20 years.

amount

since the interest

"The

realize

these

suade

possess

must be found

way

profiteering. income
always main¬

direct

mented by other

"A

come

mature

savings.

by daily cost of
Our suggestions for
a
revitalized savings bond pro¬
gram are designed to attract ad¬
ditional savings from families of

cent of unskilled

per

service

semi-skilled

of the Korean

start

family

families

of

any

Seventy-six

a

ings total because all of their in¬

U. S. savings
bonds.
This percentage has been
increasing each year since 1946.

and

by

carry

government bonds

LOS

ANGELES,

Donfeld
now

and

Nico

Calif.—Miltori^
D.

March

affiliated with Merrill

are,,

,

1

particularly in reduction .of outstanding debt. Reports better
operating ratio and increase in gross earnings.

be

equipment, new as to operating economies and new as to capital

1

$41 million while interest charges had re¬
Temporary relief was

to

secured

by the postponement of part of cur¬
under a 1938 Refinancing

rent interest charges

Plan, and out of the improved earnings of the

period these deferred payments were dis¬
charged in full.
Upon the adoption of Section 20 B as an
amendment to the Interstate Commerce Act,
war

p

Lehigh Valley saw and seized the oppor¬

the

start putting its financial house in
provisions usually referred to

tunity to

order under the

the Mahaffie Act.

as

The

initiated,

was

...

an

saw

,

1948 when the program

in

situation

immediate maturity of

$5 million first mortgage 4s and most of the
divisional debt was due in less than ten years.
effect

To

caused a subsidiary to acquire nearly all of the
1948, for cash and hold them as an investment: ,
extended for 20 years, the divisional bonds were extended to 196!* :
or
longer, .the "annuity" bonds were given a fixed maturity of >
1989 and the junior lien, General Consolidated Mortgage, bonds ,
were made 25%
fixed and 75% contingent interest. A bonus of
stock was given to the junior bond holders for their sacrifice and ,
cooperation and a sinking fund was created which has the effect ,
of restricting dividends until a
really important reduction of
funded debt, exclusive of equipment obligations, is accomplished.
the

company

LOOK

NEW

THE

By the modification plan which was followed by the merger
with the Lehigh Valley, the funded debt

part fixed and part a contingent claim as to
maturity less than 20 years, viz:

became
no

1950, the company's mortgage debt was

On Dec. 31,
as

reported

follows:

$104,442,000
$25,266,000

Fixed

:

Charges

as

'

$4,843,840
$1,110,565

.

the

taken from

herein

shown

1,598,584

Charges

36,945,500

Contingent Interest Debt—

The

Charges $3,245,256

$67,496,500

Debt...

Interest

Fixed

1950

,

would have been earned in every year, 1928 through
1950 except in 1932 and 1945 when deficits were reported.

annual report

of

sum

present

(Dec.

1950)

31,

fixed

and

contingent

DEBT —LEHIGH VALLEY RAILROAD

OF FUNDED

(Excluding Equipment Obligations)
outstanding amount of each issue listed for the close of

The

Common Stock

show the new maturity and to give effect"
bonds having

to the division of the General Consolidated Mortgage,

been exchanged for new certificates to make one quarter of
issue of fixed interest and three quarters contingent interest.

(No Par Value)

■

$5,954,405

..$129,708,000

Total

2,320,234

Charges

53,815,500

Contingent Interest Debt—

interest and

Charges $3,634,171

$75,892,500

Debt.

Interest

Fixed

1948 has been adjusted to

*•••

CAPITALIZATION

of 11 railroad subsidiaries

TABLE

f

IN

graphic manner in which to present the results ac¬
complished by Lehigh Valley in*the period of less than two years
or from Aug. 1, 1949 through 1950, is to show the amount of mort¬
gage debt by issues at the end of each year, 1948, 1949 and 1950.
In brief, the total funded debt exclusive of equipments in the
hands of investors at the end of 1^48 was $129,756,000, calling for
annual fixed interest of $5,954,405.
Of this debt $45 million or
mor£ matured in dight years.
The most

Speer Carbon
v.

Atwater

charges on bonded debt, $4,843,840 would have been earned in
every year, 1928 through 1950, except 1931, 1932, 1938 and 1945.

179,034 Shares

.

Hubert F.

first 4s due June 1,

The

V

-

satisfactory debt structure,

more

a

Total

New Issue

income of ;V

gross

mained about constant.

Reduction
an offer to
sell, nor a solicitation of offers to buy, any of these shares.
TAe offering is made only by the
Prospectus.
:

)

•*.*

1928, the Lehigh Valley had an annual
$72 million which ten years later had declined
In

This announcement is neither
'1

physical aspects the old Lehigh

both the financial and

From

Valley has taken oh a new look; new as to motive power and other

Lynch',

is planning to pass will not have been
rising. Under the- ar¬ Pierce, Fenner & Beane, 523 West
Sixth Street.
adequate for meeting the re¬
rangement between the Federal
quirements of the current infla¬ Reserve Board and
the Treasury
tionary situation
This highlights
With Gross, Rogers Co.
Department the long-term inter¬
the need for an effeciive savings
est rate on government bonds has
(Special -to The Financial Chronicle)
program which, by transferring to
increased from 2 v2 to 2%%. Rates
LOS ANGELES, Calif.—William
savings dollars that would other¬ on other
government obligations K. Gillett has been added'to the
wise be spent at the stores, will
have also risen.
In view of this staff of
Gross, Rogers & Co., 559
substantially lessen inflationary
fact, any government savings pro¬ South Figueroa Street, members
ipressures throughout the Ameri¬
gram must pay interest at a rate of
the
Los Angeles Stock
Ex¬
can economy.
considerably higher than that paid change.
He was formerly with
"We
are
convinced
that
the by the E bond
Fairman & Co.
program.
gress

,

railroad reconstruction progress in recent years, J
gives data on the Lehigh Valley Railroad. Cites
improvement in physical facilities, and in capital structure,

structure.

should

a

that

show

Board

majority

possess

bonds

come

with income lower than $5,000 do

the interest of

can

has

War

Korean

Reserve

eral

writ¬

am

ing to express

of

the

sales.

held

be

can

variety of maturity dates to ap¬
peal to the various reasons moti¬

af¬

can

exceeded

"Moreover, studies by the Fed¬

•

lows:
"I

families

far

changed this trend.

fol¬

Snyder

"These

might

have

the amount of

on

that

individual.

any one

years,

ford)

placed

bonds

in

of

letter

beginning

year,

moderate income

program.

the

these

1946, redemptions of $25 and $50
savings
bonds
(the type these

as

text

income

moderate

be

must

vating
each

"For

anti-inflation

The

the

in

groups.

the

of

part

pro¬

simply is not sufficiently
attractive to workers and their

attract greater

savings

bond

savings

The current Series E bond

gram.

in¬

rale

terest

the

in

made

be

to

S.

program

with

program

U.

current

new

bond

savings

have

would

Snyder

urging

■

Mr. Atwater

approximately 3.5%.
"This new type of bond should
have the general characteristics of

people would respond
American Federation of Labor on eagerly to the proper type oi' sav¬ the current Series E bonds. It
However, to get should
•July 5 made public a letter to ings program.
be
non-negotiable
and
Secretary of the Treasury John this response, substantial changes non-transferable. A. definite limit

W,

1

Members, New York Stock Exchange

As illustrating

rate

of interest be

American

President William Green of the

Thursday, July 12, 1951

...

the
In;

1948 and until the effective date of the Plan, Aug. 1, 1949, all debt
fixed interest basis.
■ / *.

was on a

Interest

;
-

Price $26.25
.»

.

per

Dec. 31. '48

Share

First

t

4s

1948

Copies of the Prospectus

may

be obtained within

Mortgage 4V2S,
Mortgage
&

4s,

-

from

any

of the

undersigned only, by persons to whom the undersigned
may legally distribute the Prospectus in such states

5s,

——

1969

-

L.

V.

Railway

L.

V.

Terminal

L.

V.

Harbor

$48,000
2,538,000

$35,000
2,487,000

$4,000
2,395,000

$107,775

9,869,000

9,350,000

561,000

2,914,000
1,435,000

2,804,000

2,679,000

107,160

1,408,000

1,230,000

3,761,000

3,568,000

178,400

14,711,000

14,587,000

13,699,000

616,455

Canal—

1969 —

4V2s,
any state

Y.

4''/2S,
5s.

1974—

9,572,000

1979

Term.

1984

3,000,000

Total

Higginson Corporation

Consol.

4s

Gen.

A. C. Allyn and Company

Consol.

4Vis,

Consol.

Fixed

Part

Total

Fulton, Reid & Co.

Gen.

of

Gen.

Shuman, Agnew & Co.

Gen.

Stroud &

Company

Consol.

D,
4 Vis

Gen.

Incorporated

Consol.

5s

Contingent

Consol.

-1.

4s

8,865,000

2.934,000

•

443,250

8,924,000

9,619,000
•

55,350

446,200

2,676,000

120,420

$58,002,000

$56,811,000

$53,390,000

$9,764,250
5,174,250

$9,029,250
4,671,250

$7,753,250
3,749.250

3,000,000

B

C.

Fixed

Consol.

1

A, 2003

5s

Incorporated

Blair, Rollins & Co.

5s,

Liens.".—

Prior

Gen.

Gen.

Paine, Webber, Jackson & Curtis

9,307,000

9,803,000

Lehigh & Lake Erie 4Vis, 1994

Lee

2,832,000

2,608,000

$17,938,500

$16,532,500

$14'll0,500

$609,246.25

$3,245,256.25

$75,940,500

13,726,750

$36,945,500

$129,756,000

$121,941,000

$104,446,000

130,400

6,774,000

$48,597,500

168,716.25

10,604,750

8,314,000

$310,130

$19,566,750

$53,815,500

Part

$67,500,500

326,556,750

9,000.000

E

F

$73,343,500

$29,292,750
15,522,750

2003

$2,636,010
,

$782,670
477.213.75

338,700
$1,598,583.75

Incorporated

July 12, 1951.




Total

!
;

Dec. 31, '50

3,919,0f0

1969

N.

1989__

1989

6s,

Chgs.
of

Dec. 31, '50

10,062,000

past due

Consol.
Consol.

Penna.

«.

as

,

Dec. 31. '49

Bonds

___

$4,843,840

The total bonded debt in the hands of the public on

April 30,

v

Number 5028

Volume 174

1950 is stated

The Commercial and Financial Chronicle

...

(161)

Adjustments Under Plan

by the President to be less than $100 million.
bonds under the General Consol¬

The amount of outstanding

-

Retirements etc. Restored to Income

idated Mortgage as of June

1, 1951 was $13,699,500 bearing fixed
interest, and $33,889,500 bearing contingent interest; a reduction

ji

$25,000,000 Bonds

6,428,000

Credits

Tax

of

$3,467,000 face amount of this mortgage in five months of 1951,
To accomplish this heavy reduction in bonded debt in so
short a time the Lehigh Valley has been aided by the receipt of
two substantial cash payments—

„

$196,000

Total

$1,329,000

in

(5-12th

1949)

3,197,000

Prior Lien

Sinking Fund

Contingent

Tom explosion in World War I, and

Interest

101,000
873,000

—

362,000
1,549,000

and
.

Deductions

received in December 1949, amounting to $8,266,153.
Both

in effecting the purchase
of bonds and were applied, as will be seen from the table, approxi¬
mately pro rata to the several issues.
payments

Available
Other

,

special funds are available
is of the greatest importance and while retirement may be at a
lesser rate in 1951 and subsequent years due in part to higher mar¬

One-half

From

complete

Sinking

Fund

""

~

"

and

4,587,000

1,111,412

2,293,515

1972

1,111,412

Fund

2,293,515

on

Bonds

Interest

Contingent

ity.

1948

11,652,000

Reduction

Total

1950

Cost
"

'■

'■

1

"

9,995,615

■
,

1111

.

—

.

;

■

1

.

'

"y."

"

;

11

m

Garfman, IWalz With

Lewis D. McDowell With

L, F. Rothschild & Go.

Chas. A. Day

Co.:

& Go.

83%
-80%
70%

___

_

J.

Barr

Charles T. Matz

(Special to The Financial Chronicle)

BOSTON,

CHICAGO,

Mass.

D.

Washington at Court Street, mem¬

leaded cars one way in 81/2 hours while five
required for a one way trip in 7 hours with

formerly with Francis I. du Pont
& Co., and Swift, Henke & Co.

change.

Mr.

office of J. Arthur Warner & Co.

units

were

former

cars.

Salle

to

Matz

Mr.

was

231
,

with

South

Gartman

La
was

Wheelock

&

Chas.

bers

of

&

Day

Boston

th®

associated

become

A.

CHICAGO,

and

first

coal

one

third

stations

etc.

Inc.,

Co.,

Stock

that' the

second

111.—Frank

an

The

He

Salle Street.

Mr. Hutchinson was

was

partment and prior

offer to sell

nor a

solicitation of offers to buy any of these securities.

offering is made only by the Prospectus.

'

The Victoreen Instrument

Company

Common Stock
($1 Par Value)

step cannot be

Price $4 Per

Share
h

outlay is not distorted by depreciation or other non¬
*

Copies of the Prospectus may be obtainedfrom the

cash charges.

On the record
ating ration of

81.8% to

we

Inc.

arid Harris Trust & Saving^ Batik.

signments. The effect is found in the reduction of Cost ol Con¬
ducting Transportation—the one classification of the accounting
for railroads where the results of true maangement will show, and
the

thereto was

with Brauri, Bosworth & Co.,

&

324,000 Shares

expected to afford the same average return as the first.
(3) Final changeover brings but one class of shop, the elim¬
ination of coal and water stations, the sale or dismantling of some
locomotive facilities and a rearrangement of schedules and as¬

where

B.

with Weeden & Co., 135 South La

Ex¬

& Co.

ton

This advertisement is neither

of total

so

;:-:Yv£?Y Y'YV

Hutchinson has become associated

prior thereto was with Wes¬
Co., and Paul D. Sheeline

and

Chicago.

New

The

&

G. Becker & Co. Inc.

formerly in the previously with McMaster Hutch¬
trading department of the Boston inson & Co. !in the municipaf dd-

Inc., Reynolds & Co.,
and Harriman Ripley & Co. Inc. in

diesel. power purchased is
usually put to full utilization and in either road work or switching
affords a high return on the investment.
(2) The second one third is usually to be acquired while a
considerable amount of steampower is still being utilized; hence
it is necessary to maintain service for both classes of power,
(1)

water

Street.

Co.,

Cummins,

York, the east bound movement predominates,
hence the large amount of export shipments noted by the New
Jersey commuters. Diesel locomotives in the main line service
draw as heavy loads and make as good time as competing lines.
Heavy industry located along Lehigh Valley lines includes
the home plant of Bethlehem Steel.
During 1950, a total of 47
new
industries were located in Lehigh Valley territory while
16 others were engaged in plant expansion.
The cumulative effect of a complete change-over from steam
to diesel motive power has been variously estimated by the exec¬
utives of major railroads and in general, they divide the assump¬
tions into three premises:
?

'&

has

—

#

Lehigh Valley has traffic composed of 50% products of
mines and 38% manufactures and miscellaneous—on the main line,
The

Buffalo

Heller,

Brothers

(Special to The Financial Chronicle)

Lewis

with

steam

Inc.;
(Incor¬
Bruce & Co.;
Co.; Kaiser &

Joins Weeden & Go.

Lewis D. McDowell

(Special to The Financial Chronicle)

Rothschild

60

Inc.;

Frank D, Hutchinson

78%
65%
50%

have become associated with L. F.

trips carrying 70

Reynolds & Co.;
Co.; B. J. Van Ingen

Inc.; Coffin &,Burr
Allyn and Company

porated);

McDowell

the

C.

&

Co.; and A.

111.—George W.
Gartman, Jr. and Charles T. Matz

unit,

of

Harris, Hall & Company

costs less to, operate and more
importantly, is available for service a greater number of hours
per day.
•
/
Y
In short line service where heavy grades, &re encountered
as on the Hazleton branch, a four unit diesel can handle two round
steam

Co.

A

order for

Barth

&

Improvements have been made in some of the major yards
and while a diesel switcher cannot handle more cars per hour
a

group

Witter & Co.; William R.
Inc.; Equitable Securi¬

1949

I

ofVring

National Bank

•:

Yard

than

First

.

Passenger Train Miles

Freight Train Miles.
Switching Miles

of the

ties Corporation;

during 1951 and the performance record of diesel power for the
1950

par

Staats Co.

early delivery; four new diesel tugs were acquired as well as 2,150
freight cars, while over 2,000 such cars were rebuilt.
Diesel locomotives to eliminate other power will be in service

Y

The

Dean,

The President, Mr. Major, and the Vice-President and General
Manager, Mr. Patterson, discussed this and other matters at a
meeting of the New York Society of Security Analysts last month.
Not only did the Lehigh Valley acquire 54 diesel "units" in 1950

past two years has been—

at

Oregon;
Seattle-First
National
Bank;
Security-First
National Bank of Los Angeles;
California Bank of Los Angeles;

cash from other sources to meet maturities but as borrowings
the most part are on a 15 year basis, the high hurdle of
maturities should be passed in a year or two.

on

call

Portland,

up

are

to

1, 1967.,

Goldman, Sachs & Co.; Union Se¬
curities
Corporation; Weeden &

for

more

subject

are

Aug.

Forgan & Co.; C. J. Devine & Co.;

;

through depreciation charged to Maintenance of Equip¬
$2 million. This has required putting

but 17

Bonds maturing from 1968 to

& Co., Inc.; The First Boston Cor¬
poration; Harriman Ripley & Co.
Inc.; Harris Trust and Savings
Bank; R. H. Moulton & Company;
American Trust Company; Glore,

$17,464,000

ment in the last year were

and 28 units in the first half of 1951

1949, series B, due Aug. 1,
1972, inclusive.
The
priced to yield from

include, among others, The Na¬
tional City Bank of New York;
The Chase National Bank; Blyth.

$5,812,000

Bonds

Interest

4%,

bonds,

are

Members
Fixed

Veterans'

1.20% to 2%, according-to matur¬

2,223,000

Sinking

1%%

$25,-

California

of

and

bonds

in

through 1950, equipment obligations have risen to
$25,448,387 or an increase of about $15 million net. Currently, the
annual maturities of such obligations are $3 million while the
accruals

$1,911,000

~~

offering

are

State

and

Act of

Bought in 1950 to Anticipate Sinking Fund

September a definite
program of substituting diesel power for steam.
It has reduced
passenger train mileage and increased the tonnage of freight trains
to the point where it is now ranked as fourth in the number of
gross tons moved per freight train hour.
will

General

General

to

realize that cash must also oe conserved for im¬

Valley

for

/

v;.,' '

'

One-half to Other Corp'n Purposes

NEW POWER AND EQUIPMENT

Lehigh

j.

■

Purposes

provements and capital expenditures, particularly equipment.

The

$974,000

-

:-■}

Accelerated debt retirement when

ket prices, we do

000,000

1953

instrumental

were

America, N. T. & S. A.,

associates

IV2 %

(2) A refund of income tax applying to the years 1940-1944

Y

Offered to Investors

6,498,000

Bank of

(1) A partial settlement of the losses suffered in the Black

1

Of State of California
$6,498,000 ■>'

$7,671,000

Available

13

only in States in which the undersigned may legally

find therefore that in 1950 while the oper¬

undersigned
distribute it.

Lehigh Valley dropped 5 percentage points,or from

76.8%, it does not tell the whole story.

It is more im¬

portant to observe that gross increased $2,100,000 in 1950 over
1949, and that in the same period $1,705,000 was saved in
transportation costs out of a total reduction in expense of $1,835,000. The balance of the saving coming from "overhead."
In the same year gross ton miles per train hour increased
nearly 7% or from 59,598 to 63,157.
Volume pays.
At present costs volume plus expeditious
handling and control of costs converted an increase of $2,100,000
in gross into a gain of over $21/2 million in the amount available
for fixed charges.

Barrett Herrick &

A. H.

Co., Inc.

Vogel & Co.
H. L. Emerson & Co.

George R. Cooley & Co., Inc.
Mason Brothers

Incorporated

Mid-South Securities Co.

Mann & Gould

Saunders, Stiver & Co.

,

Hannaford & Talbot

Frank Knowlton & Co.

Jenks, Kirkland & Grubbs

HOW THE MONEY IS USED

The

readjustment plan contains provision for the application
income, as defined, and the use of funds for fixed and
contingent charges and sinking funds. The Compay has published

of

Nelson, Browning & Co.

Pacific Company

of California

Stanley Pelz & Co.

net

two tables

as

follows—(in 1949 contingent charges started Aug. 1).
1949

Income
Fixed

Available

for

Charges

Balance




Fixed

Charges

3,350,000

$1,047,000

$5,169,000

Wiley Bros.

Hancock, Blackstock & Co.

$9,019,000

5,374,000

Clair S. Hall & Company

Incorporated

1950

$6,421,090

Boenning & Co.

B. F. Ward & Co.
July 12,1951.

I

*

14

The Commercial and Financial Chronicle

(162)

..

.

Thursday, July 12, 1951

Security Traders Association of Detroit and Michigan

Paul I.

Howard

Moreland, Moreland & Co.; Russ Keier, Collin, Morton & Co., Toledo; Clarence Horn,
First of Michigan Corporation; Lee Wolf, A. G. Becker & Co., Chicago

Dorr,

Detroit

Stock Exchange; George A. McDowell, Geo. A. McDowell & Co.; M. C. Baird,
John Camisser, National Bank of Detroit; Andy Reid, Andrew C. Reid & Co.

Geo. A. McDowell & Co.;

W>. i >#■/ w-

'■

V.
*ktli.AJ
Leslie 'Muifch^tte, First of Michigan Corporation;

"-V
I

"" Ed

Diedrich, McDonnell & Co.; Sam Hague, Smith, Hague & Co.: Fred Winchler, Shader-Wincklbf
Co.; Wm. Got don, Shader.'Winckler Co.; Harlry Schafer, Shader, Winchler Co.; Guest )/,
-w,

»•

xv'-*;%

)

:

r

'

'

Clarence Horn, First of Michigan Corporation;
Larry Dilworth, R. C. O'Donnell & Co.; Ed Miller,
Smith, Hague & Co.; Russ Keier, Collin, Norton & Co., Toledo; - Stanley Weaver, C. G. McDonald
& Company;
R. C. O'Donnell, R. C. O'Donnell & Co.; Howard Dorr, Detroit Stock Exchange

H.

A.

*troWr?' Baher*

Co.;

Robert

McDonald, Jr., McDonald, Moore & Co.; A1




Moons, Manley, Bennett & Co.;
Aldingcr, Fordon, Aldinger & Co.

.

Manufacturers

National

Bank;

Howard

-

.v"\.

John Nunnely, guest;
Parker, Manley, Bennett &

A1 Lomak,
Co.

>• '

Guest; Russell Mann, Goodbody & Co., Flint, Mich.; Ncrman D. Humphries, Keystone Company
Boston, Detroit; R. Laule, Goodbody & Co.; Frank Voorhies,' Goodbody & Co.;
Wm. F. Opatt, National Bank of Detroit; Phil Turner, National Bank of Detroit

John

Pinelli, Shader, Winchler Co.; Robert Wallace, Wm. C. Roney & Co.;
Porter, Baker, Simonds & Co.; C. G. McDonald, C. G. McDonald & Co.

C. G.

of

Number 5028

.Volume 174

.

.

.

The Commercial and Financial Chronicle

Annual

John

F.

Egan,

Geo.

First
Elder,

J.
...

California Company,
A. McDowell &
t

San Francisco, president of the N.
Co.; H. Russell Hastings, Crouse &
1"r-.
***•?•

•

..

■

'

.

S.

T.

Dhooge, Manley, Bennett & Co.; Jack Kenower,
Kenower, MacArthur
Allyn, Blyth & Co., Inc.;' Reginald MacArthur, Kenower, MacArthur A
^

AI
•«;*

■

■

Geo. Reuter, Baker, Simonds & Co.; Harry Buckel, Manley, Bennett

Frank

P.

Meyer,

H.

H. Russell Hastings, Crouse & Co.; John H. Dykema, Chairman of the Michigan Corporation
Geo. J. Elder, Geo. A. McDotvell & Co.; John F.JXgan, First California

Company, Satv-Francisco; Edw. _H. Welch, Sincere «fi Co.; Chicago;
Watting, Lerchen

&

Co.;

H. A. ..McDonald, Jr.,

Russell

also

Securities Salesman's Corner

Or

(Article

the people you try to sell

by

asking

times

a

whom

simply

know

someone

like

would

I

Mr. Smith

"I

to

meet/'

I

don't

as

know,

his

name

Mr.

but you
have gained the
goodwill and confidence of your
prospect. When this happens you
-can safely ask for names of people
who might be interested in doing

per¬

You

prospect

the

a

names

on

it.

You must however make it easier

discussing.

for your prospect to help you than

card
;

a

letter

think
to

he

has

some

try to sell
me

that I

gram

about,

on

meet

you

an

whom

don't

you

to meet others

chain
you

of

Co., Chicago;
Company,

do

can

Against Year Round

live

Saturday Closing

and in life. Being a coop¬
erator begets friendship and that
brings success.

and
such design
you,

*

•

though.

you

N YSEMeitfbersVote

people
with
business. We

get that smooths our way in busi¬

investment pro¬

pretty enthusiastic
he knows his stuff.

am

and

endless

help

assist you1 in building an

copy

securities.

scare

can

sign it.

and

Bill,

He wants to

Some will

that

alone, and in the last
have' analysis it is the help we give and

"This will introduce Tom Jones,
nice guy whom I think you'll

He sold

quaintances best fits that descrip¬
tion Mr. Smith?"

can

~

prepare

letterhead

"Don't let that

Smith, but I can describe him to
you. He is someone who is inter¬
ested in saving money, or in mak-

sale

his

on

like.

("Who is that?")

them.
There are
you don't make the

for

when

3)
"You

his

on

card.

might

you

"Dear

Prospecting
prospects from

name

along -the * following • lines,
your "center of influence"
it

obtain

hand

-with three

By JOHN DUTTON

can

your

business

or

then

You

&

& Co.

sonal

1

First of Michigan Corporation; Edw. H. Welch, Sincere
Hastings, Crouse & Co.; John F. Egan, First California
San Francisco; Frank Kemp, R. C. O'Donnell A Co.

&
Co.;
Co.

*'•

Chas. E.Bechtel,

Me Donald, Moore

and

r

Victor

A.;

Co. "
!»""y .•

£t Securities Commission;

j.

IS

Outing June 26th at Plum Hollow Golf Club

Geo.

Ed Miller, Smith, Hague & Co.;
di Co.;

(163)

ness,

Result of recent

The

Lily-Tulip Slock Issue
Underwritten by Blyth
The
Lily-Tulip Cup
offering 75,000 shares

tional

common

Corp.

is

of addi¬
at $50 per

stock

poll shows 70^

against proposal and 571 in favor
membership

of

the

New

York

Stock Exchange in a recent
referendum have voted against a

proposal to close the Exchange on.
Saturdays throughout the year.
The vote was 700 against the pro¬
posal and 571 in favor. One ballot
was

blank.

The vote

was

the larg¬

est ever cast by the Exchange*
ing his present assets do a better Throw him out right away if yqu
share and is granting holders of
membership.
job for him, or he is retired and want to, but he has a darned good
its common stock rights to sub¬
The question was submitted to
business with you, or who might interested in a sound investment plan to tell you about, and I think
scribe at the rate of one share for the
lead you to those who can do so. program such as we have been you may want to hear it.
membership in the form of a
,

to refuse.1

\

;

your

each

ac¬

"Sincerely
You

used

"Mr.

ance

it pay you in
your business to widen your ac¬
quaintance, if you do it in the
right way?" ("Of course.")
does

also ask your coopera-

telephone the prospect and
that you are 0.*K.

.say

The

After you have finished your dis¬
cussion and before you leave say:

can

following ideas have been
successfully by life insur¬
men in obtaining favorable

Or, you can write a note ad¬
dressed to your "center of influ¬

ence" asking for an introduction to
ythe prospect and request that your
"center of influence"
yC.li. merely write at.the bottom,
name of the prospect,
"This fellow is O. K." and sign

introductions:
I

Ask

your

to write the

his

name.

*

./

/

•*

—.

:'

-

%

% Pirltiyaje • Your Influence Centers

SECURITIES SALESMAN
We

need

an

experienced

stock and bond

man

,

i

Since

■that

who would like

,gpodwill

the

ished

you

grow, see
to

settle in Florida. A liberal drawing account provided to a high

grade securities salesman who would help
which is

us

cover

only scratched. Wonderful opportunity for

a
a

territory
man

with

it

AND

and

1577




St.

will / continue

to

take

an

interest in you. Also try and re¬
turn a favor with a favor when

COOK

Petersburg, Florida
,

shares

held

of

record

Some will come along later.

amendment. after

.

'

containers which

are

used

in the

serving and packaging of food and
beverages. The

company

summer
months
of
June,
August and September. >

types and styles of such products,

marketed

all

under

of
the

-r

f
'

approximately 500 different sizes,

substantially

July*

produces

which

and combinations of these names.

With J. Barth Co.:
■

Co.,

.

FRANCISCO, Calif—James*

E, Kramer is
&

y

(Special to The Financial Chronicle)

SAN

are

company-

can.

many.

constitutional

1951.

5,

will

Keep
prospecting in owned trademarks "Lily", "Tulip",
mind.
If you can't sell them all
"Nestrite", "Vee-cup", "Mixrite"
you
can
make good friends of
you

Box

as

/appreciation for any.help that is
..given to you. Report back and let
him know if your cooperator has
helped you to a sale. He will like

investment experience.

SHAVER

rqust be nour¬
anything else
want to stay alive and
to it that you show your
same

July

scribe

tor to

five

Rights to sub¬ the Board received a
petition from
expire at 3 p.m. on 329 members on May
24, 1951. The*
July 19, 1951. Blyth & Co., Inc. petition, which the Board was re¬
heads an investment group which
quired to submit to the member¬
has agreed to purchase the un¬
ship under terms of the constitusubscribed shares.
tion, provided for closing the Ex¬
Proceeds from the sale of the
change on all Saturdays except
stock, together with a portion of under unusual circumstances,
v
the proceeds from proposed bor¬
On April 12, 1951, the Board o£
rowings and other funds will be Governors of the Exchange de¬
applied principally to additional cided against closing on all Sat¬
operating facilities and to a new urdays after considering the re¬
plant being constructed at Spring¬ sults of a poll of
membership
field, Mo..;;
opinion on the subject.
t' | '
Lily-Tulip Cup Corp. is princi¬
The vote did not affect the pres¬
pally engaged in the manufacture ent policy of closing . the Ex¬
and sale of paper cups and nested change on
Saturdays during the
on

"Tom Jones."

,

Getting Introductions

Obtaining Names

Smith,

Who among

now

with

J.

404 -Montgomery

members

of

the

New

San Francisco Stock

Bartl*

Street,,

York

and.

Exchanges.

16

The Commercial and Financial Chronicle

(164)

.

Thursday, July 12. 1951

.

.

Association of Los Angeles Spring Party

Cliff

Abe

Chet Glass, William R. Staats Co.

Poindexter, Turner-Poindexter & Co.! Dan Frost, Shields & Company;
Jo French, Blyth & Co., Inc.; Jack Carter, Vance, Sanders & Co.;
Ralph Phillips, Dean Witter <£ Co.; Frank McGregor, Title Insurance Co.

News About Banks
CONSOLIDATIONS

REVISED

•

'

Bankers

and

NEW OFFICERS, ETC.
•

BANK

NATIONAL

CHASE

CITY

THE

OF

YORK

NEW

OF

Mar. 31, '51

June 30, '51

5

$

Total

resources-

Deposits
Cash

and

from

U.

——

5,227,895,685 5,272,212,689
4,793,337,782 4,846,660,746

due

banks
Govt,

S.

1,379,189,823 1,435,547,720

—

se¬

hold'gs 1,380,413,671 1,419,840,131
discts. 1,892,132,154 1,869,667,422
54,935,517
57,187,886
profits™

curity
Loans
Undiv.

The

&

of

election

Wrench

as

is

it

Corporation,

It

Vice-

announced

was

July 5 that

on

stockholders of Girard Trust Corn

President of The Marine Midland

Exchange

Trust Company of New York was

subscribed to 134,363, or 98.2% of
the 136,875 new shares of the bank

announced

Directors, and Arthur T. Leonard

1,590,053,809

S.

Wilmer

Assistant

an

July 3 by James G.
Blaine,
President,
following
a
meeting of the Board of Directors.
Mr.
Wrench, formerly Assistant
Treasurer, has been with The
Marine Midland Trust Company
of New York and its predecessor
organizations since 1913 when he
started as a file clerk, and con¬
on

offered at

The offer

Philadelphia

of

Bank

price of $35

a

was

made

on

share.

a

Cash

and

*

at

times

the

8.

Govt,

336,849,405

7,940,499

7,326,580

Undivided

*

FIRST
IN

held

subscription privileges

with

expiring

July

on

it

it

313,694,255

prof.

*

709,601.184

discts.

&

share for each five shares

one new

bank.
706,372,359

basis of

a

380,361,479

410,738,406

M. E.

Singleton Jr. is President of the

se¬

hldgs.-

curity
Loans

to one-half million dollars.

due

banks—

from
U.

1,539,407,255

1,506,063,895 1,457,121,675

Deposits

The

it

*

NATIONAL

July

on

April 9,'51

June 30,'51

2.

San

Francisco,

Cal.»

opened its new Parkmerced office

LOUIS, MO.

ST.

of

National

California

Anglo

Bank
BANK

The heavy
$
$
left only Total resources
487,079,016 491.653.426
GUARANTY
TRUST COMPANY
445,784,630 453,485,912
2,512 shares to be taken up by the Deposits
Cash and due from
j
;
OF NEW YORK
underwriters, headed by Smith,
banks
124,830,735 124,792,209
Vu 4
June 30,'51
Mar. 31, *51 tinues
his
association
with the
■*
Barney & Co.
Upon settlement U. S. Govt, security
$
g
Comptroller's Department.
holdings
128,380,001 123,802,189
with the underwriters, the capital
Total resources- 3,095,303,083 3,021,824,366
Loans &
discounts 163,117,078 173.671,356
Us
it
it
Deposits
2,635,312,440 2,579,928,778
and surplus of the bank will total
Undivided profits-_
5,569,603
6,609,594
Cash
and
due
if
it
it
capital stock being
Promotion of T. Clyde McCar- $38,000,000,
from banks—
657,873,094
752,227,696
821,250 shares of a par value of
U. S. Govt, se¬
roll, formerly Trust Officer, to be
A booklet commemorating
its
curity hold'gs 1,002,542,315
782,194,389
a
Vice-President of the bank is $15 per share or $12,318,750 and
75th anniversary had been issued
Loans & discts. 1,262,061,786 1,294,961,299'
surplus $25,681,250. A recent item
announced
by
Guaranty
Trust
Undiv. profits—
77,110,235
75,819,723
in attractive form by the First
Company of New York. He con¬ regarding the issuance of the new
it
$
National Bank of Columbus, Ga.
tinues with the Trust Department, shares appeared in our June 28
In the Foreword to the brochure,
Horace C. Flanigan, Chairman
with
the
investment
work
of issue, page 2685. -1'
it is stated that "the general theme
of the Board
of
Manufacturers which he has been identified dur¬
*'l*
#
is our building of architecutral
Trust Company, of New York, an¬ ing most of his 26 years with the
It is made known in the "Bulle¬ beauty which was erected about
nounces
that Tristan E. Beplat, company.
Newly appointed Sec¬ tin"
the time of the Civil War.
The
*

%

six

were

Co.;

v

CAPITALIZATIONS

THE

than

of

Board

the

of

Vice-Chairman

&

as
great as they
beginning of the 20as President. These advancements
year
period, when they totaled
expansion within the framework
follow the death of Gen. Charles only $980,000.
At that time the
of the Canadian economy.
G. Dawes, Chairman of the Board, capital structure was $150,000. In
it
it.
it
1941 the capital funds amounted
whose death in April was noted in
The
First
National
Bank
of
to
our May
$300,000,
with
deposits
at
17 issue, page 2062.
Ardsley, N. Y., increased its capi¬
*
$1,820,000. The April 9, 1951, state¬
tal effective June 22, from $65,000
NATIONAL
BANK
OF
DETROIT
ment, it is stated, showed that de¬
to $81,250, by
the sale of new
AT DETROIT, MICH.
posits had grown to an amount
stock to the amount of $16,250.
June 30,'51
April 9,'51
in excess of $6,000,000 and today
$
$
if
ijc
the capital structure has grown
Total resources-

Bank

Swiss

stated, feels that there is scope for

NEW BRANCHES

Fox, Stern, Frank, Meyer & Fox; Francis Moulton, R. H. Moulton
James Sheldon Reilly; Ben Walter, Bingham, Walter & Hurry

Allard

2,

Calkins,

A.

stockholder subscription

REPORT OF

CONDITION

OF

—

'•'

!

'.

•

•

.11

of

120

of

published

the bank's Far Eastern Represen¬

tative, < stationed in Tokyo, has
been apopinted an Assistant VicePresident.
Mr. Beplat was for¬
merly Chief of the Money and
Banking Branch, Finance Divi¬

ond

Vice-Presidents

of

the

(July 2) of the Office of the
Comptroller of the Currency that

bank

Joseph C. Buttery and Elmer
G. Tewes, both Trust Department
officers, and Walter H. Zulch,
Foreign
Department.
John
P.
are

sion, of the Military Government

that

Leod

Foreign
pointed
Mr.

it
M.

in

Tokyo.

Goss

of

has. been

facturers

Trust

was ^ ap¬

During World

with

Co.

War

bank's

Secretary.

an

Goss

the

known

the

Department
Assistant

>

At

made

was

Manu¬

since

II

he

1937.

>

*

*

the

of

cial

New York

has

the

past

For

that

for

resigned

lie

tional Bank

post

The

corporation will have

SOCIETY

of

as

in

Total

this institution

with

dis-

tinjction, and his contributions to
its

successful,- managements have

been manifold."

reference

to

Sl6an has
of; his

Mr.

the

served

14

years

Colt

fact

made

that

Mr.

for

as

nearly all
Chairman of

the Corporate Trust Committee of
ihe bank,; a post entailing "great

responsibility and

many

hours of

wdrk."
.

*

iK




elected

Vice-President

of Banks pursuant
the Banking Law of

A.

Noonan.

headquarters
The

Royal

The

OHIO

due

review

its

William

B.

and

historical

90,934,000

97,930.785

115,939,433

112,701,106

12,000,000

discounts

12,000,000

it

THE

FIFTH

if

THIRD

it

UNION

CINCINNATI,

TRUST

Corporation's

OHIO

June 30,'51
;vv'

A.

Other

'<

)'•

;X

"

CO.,
'

April 9/51
'

$

*

*

be

located

in

Bank

Building, No.
360 St. James Street, West, Mon¬
treal, Canada. Swiss Bank Cor¬
poration maintains foreign offices
in

both New York and London.
Without entering the field of com¬
mercial banking in

Canada, The

Deposits

total

capital

TOTAL

Citizens National

including

Capital t
Surplus

the

y:

J.

as

1951, while deposits are more

•

-

Assets

capital

with

total

consists

of

value

of

par

j

;

-

the

of

shown

.above'

of

7,233.56

:

above

my

..

re¬

J.

SKINNER,

Treasurer

of

institution, hereby certify
statement

knowledge

and

CHARLES
•

$100,649.98

—

deduction

above-named

that

for

of

CHARLES

I,

best

as

after

serves

the

and

purposes

Securities

*

assigned to

or

liabilities

other
are

MEMORANDA

-

pledged

secure

the

to

ACCOUNTS—- $2,424,926.48

stock

$500,000.00.

paper,

v

Floreem

LIABILITIES AND

institution's

common

'

R.

242,888.09
AC¬

$1,067,888.09

CAPITAL
+This

-

A.

325,000.00

CAPITAL

TOTAL

it
was explained by Robert A. Vine¬
yard, Executive Vice-President ofthe local

$500,000.00

—

profits

COUNTS

Waxa-

$400,000 to $500,000, effective

to

$1,357,038.39

ACCOUNTS

fund

TOTAL

June 12, following its approval by
the Comptroller of the Currency.

According

subordinated

CAPITAL

Undivided

Bank in

1,204,572.07
(not

obligations shown below)

*

of

$152,466.32

LIABILITIES

$13,076,-

structure

and

Other liabilities

657, while total assets are shown
$14,103,588.

The

individ¬

partnerships,

DEPOSITS—$152,466.32

as

*

deposits of

TOTAL

——__

Directors;

$2,424,926.48

corporations

«

of

60,000.00
419,875.28

ASSETS

uals,

—

will

50,187.38
200,298.98

assets

Demand

—

<

and

LIABILITIES

Vice-Presi¬
and W. Ford

275,630.886 253,586,850

resources

420,812.60

;———

fixtures-

of

record

bank, that expansion of the
Deposits
253,342,274 231,354,970 capital structure from $400,000 to
Cash and due from $500,000 was accomplished through
banks
84;387,542
64,517,153
the sale of 1,250 shares of stock
U. S. Govt, security "
of $25,000 par value for $75J)00,
holdings
84,541,152
84.801,514
which was oversubscribed by the
Loans & bills disct.
84,645,873- 83,063.473
Undivided profits—
3,343,195 ' 2,303,328
bank's shareholders and by the
*
*
*
*
transfer of $25,000 from the earn¬
City National Bank and Trust ings account of the bank. It is
Company of Chicago announces stated that capital funds of the
the recent election of Philip R. bank have more than tripled dur¬
Clarke as Chairman of the Board ing the 20-year period from 1931

Total

$1,273,752.24

and

States

and

TOTAL

pf $300,000, surplus of $400,undivided
profits
of

$158,732.

from

direct

stocks

Furniture

hachie, Texas, has been increased

holdings
&

17,971,476

process

Government

subdivisions

Corporal©

and

*

security

Surplus

cor¬

and

political

Langdon,

Cashier,

$

17,924,460

Govt,

in

—

States

guaranteed
Obligations
of

bank's

other

collection

obligations,

community." Harbin
K. Park is President of the bank,

from

banks

Loans

Dec. 30, '50

•

with

items

cash

and
of

United

service to the

222,396,115 220,022,764

—

and

CITY

of

institutions,
in¬
reserve
balances,

cluding

in

desire

the

Y., at
1951,

ASSETS

balances

239,758,160 236.921,144

resources

been

Engelbert, Secretary and Treas¬
urer.
The board of director's com¬
prises Messrs. Gunther, Kraft and
J.

THE

-

new

has

IN

CLEVELAND,

Deposits

general fi¬

Kraft

SAVINGS

$

nancial agents. Frank H.
Gunther,
senior New York agent of Swiss
Bank C o r p o r a t i o n, has been

W.

to

000

*

June 29, '51

dealers

dent

elected President of the

FOR

OF

$2,-

announced by S. Sloan

J.

*

an

U. S.

poration.

our

stock

tion is authorized to act

served

of

stock.

new

Cash

as

is

show

30.

call made

a

of New York.

banking

Pearce, Vice-President and Trust
Officer.
The bank has a capital

000,000 (Canadian) and will start
operations Aug. 1. The Corpora¬

capital

investments and

"it
to

with

No attempt is being made

today.

company

title "Swiss Corporation
Canadian Investments, Ltd."

share

book

dent

*

Canadian

the

new

this

of

commer¬

banks, has announced incor¬
a

that

stated

N.

5,

June

on

accordance

provisions

State

Cash,

further

is

It

000 increase resulted from the sale

represented by his recent accept¬
ance of the Presidency of the Blue
Ridge Mutual Fund, Inc., it was

Colt, Presi¬
Trust, following
a
Board meeting on July 5.
"It
is only because of the legal tech¬
nicality involved that permits our
Board to accept Mr. Sloan's resig¬
nation," Mr. Colt said. "He has

Trust Company

brought about by a stock
dividend, while the further $200,-

authorized

Bankers

of the Citizens Na¬

&

transportation."

the

the

Pittsburgh, was shipped
Columbus
entirely by river

to

5W VJVW-

the Superintendent

by
to

in

cated

was

Corporation, Basle,

because of the conflict of interest

of

it

if-

exterior, which was fabri¬

building and equipment, and the
men and women behind it, as it is

16.

The capita]

!.*«

largest of the Swiss

with

years,

it

Swiss Bank

director of Bankers Trust Com¬

14

State

a

Kocsis, Assistant Treasurer, Trust
Mansfield, Ohio, was increased
Investment; and James H. Dreyer,
from $200,000 to $600,000^ effective
Assistant Comptroller.
June 12; $200,000 of the increase

poration of

pany

Chestertown,

with

Savings

institution, effective

banking
June

Foreign Department; O. John
Betz.,
Jr.,
Assistant
Treasurer,
Banking Department; Ernest J.

George A. Sloan, who has been
a

of

Bank

served

in the Finance Department of the
Air Force.

merged

was

and into the Kent County

the

time

same

Md.,

tertown,

Bochow and Everett R. St. Aubyn
are
made Assistant Managers of

Headquarters

First National Bank of Ches-

the

metal

<

York

New

business

in

.

V

v»^N\

v**; -wssjo-W

Broadway,

close

the

IvAi'

UIUU

SSV

Correct—Attest:
OAKLEIGH
KENNETH
RAYMOND

.

L.
K.

is

true

to

the

belief.
J.

SKINNER

,

THORNE
McLAREN

NEWMAN

Directors

Number 5028

Volume 174

.

.

.

The Commercial and Financial Chronicle

17

(165)

i

President, has announced. Located
at 35 Cambon Drive, in the new
Parkmerced

shopping center (San
Francisco) and designed in con¬
temporary style, this latest addi¬
tion to the Anglo system is Anglo's

spected member of the bar of his
community. He purchased KaiserFrazer stock at $20.25 a share in
the

California. Ralph V. Johnson, As¬
sistant Vice-President, is Manager
dtnd Charles D. Kennedy, Assist¬
ant Manager.

losses

*

:

*

uThc United

>;B''

=:=

States

covery

in

to

of

coura¬

a

his

cover

those

and

holders.

the

National

effort

geous

lies

with them in

other

stock¬

The

only« hope for re¬
for* the stockholders still
requiring restitution by
30,000

stockholders

Halsey, Stuart
McMaster

and

time, complete facili¬

commodity

nected

of

in

the

to

business.

firm's

15

office

and

issued

downtown New York City, the

,

The

Kaiser-Frazer have

new

branch

by

Plan

and

pathy;

John

C. Cronin, Robert W. Terry

from

2.25%

members

the

at

June meeting of the board of di¬
rectors.

W. D.

Assistant

Beebe

Cashier

ler and J. D. Bird

Assistant

been

has

E.

But¬

appointed

were

Trust

Beebe

H.

Officers.

with

further

group

of

investors

and

was

named

was

and

our deep sym¬
relieved that a

are

we

Mr.

spared
our

a

similar unhappy fate by

withdrawal

from

the

1948

George

whom

has

be

staffed

Corning,

M.
been

securities

financing."

will

in

business

for

to

of

each

engaged

and

Co.

on

were

to

Formed in Trenton'
TRENTON, N., J. — Dresdner,
Thropp & Co., Inc., has been

will

ton

Trust

the

securities

priced

yield

to

according

to

terstate

are:

P.

approval

the

of

Commerce

offered

In¬

Commission

World

Officers

President;

Thropp, III, Vice-President,
G.

A.

Treasurer.

merly

Phillips,

Secretary-

Mr. Dresdner

with

was

Hemphill,

he

Graham, Parsons & Co.
•m-

spent

WMM WmM

three years

in the U. S. Army Air
division. Mr. Bird
joined the bank in 1936 and Mi.,

Corps finance
Butler

with

in

the

Both

1939.
bank

time except for

Mr.

Bird

Navy for Vk

years

and

service.

war

with

served

Even at their

berfi

have

continuously since

that

the

U.

S.

and Mr. Butler

The

Corps.

Air

Army

best, price controls are a temporary

superficial expedient. They deal with symptoms,,

i

,;

S.

not causes,

of inflation. If inflationary pressure

spent more than four years in the
U.

for¬

Noyes,

United

the

II,

War

iri

engage

business.

Karl P. Dresdner,

D.

and
were

Building to

States National since August, 1927.

During

■;' >

>

Dresdner, Thropp Co.

be

3.10%,

certificates

subject

years.

equipment esti¬

$2,446,453.

Philadelphia

'[ the

maturity.
The

the

many

certificates

under

three

staff

Inc.

&

by new standard

July 15, 1952 to 1966, in¬ formed with offices in the Tren¬

clusive.

Bank of Portland, Oregon, elected
new

Co.

cates to mature $65,000 each Jan.

Con¬

main

&

Hutchinson

July 5 publicly offered $1,950,000
New York, Chicago & St. Louis
RR. 3% equipment trust certifi¬

ties for the transaction of security

Kaisers.

"The

for the first

secured

lip. Trust Ctfs.

affording residents, business and
professional people in that area,

own

are

—gajnge railroad
mated to cost

public offering. Having t;; Orvis Brothers & Co. has an¬
sustained a severe loss, he brought
nounced the opening of its new
suit against the Kaisers and others office in
Jackson Heights, N. Y.,
associated

and

Bankers Offer RR.

Jackson Heights Branch.

1946

3#th office in San Francisco and
its 30th in northern and central

i'■/

Orvis Brothers Opens

ap-

?ointments became effective July
according to E. C. Sammons,

is allowed

to

accumulate beneath

v.m

them,

<rww»r«!(»,;^i,riiiii.i|(j

*

,

President of the bank.

pressure will eventually break through the controls.:

(Dominion,

Bank

Barclays

that

*

*

C

From THE GUARANTY SURVEY

Colonial and Overseas) announced
June

on

Aiken

that

Arthur

Stephen

been

elected

a

28

has

Vice-

Chairman of the Board.

Guaranty Trust Company of New York

Judge Clancy Rules
Against Otis & Co. in

FIFTH AVE. OFFICE

140

Broadway

Kaiser-Frazer Suit
Statement issued by

at

Rockefeller Plaza

60th St.

at

50th St.

BRUSSELS

PARIS

LONDON

J. LUTHER CLEVELAND
Chairman of the Board

John W. Clancy of the
Federal Court, on July 2 rendered
Judge

decision in favor of the Kaiser-

Frazer

Corporation in the suit for
breach of contract
against Otis

Co., Cleveland bankers, in con¬
with

nection
latter
tract

the
to

concern

refusal

Kaiser-Frazer

the

of

con¬

a

$10 million

a

Cor¬

poration. The amount of damages
awarded

increased

was

from

the

original
total
of
$2,588,919
to
$3,120,743. The increase resulted
the granting of interest to
plaintiff from Feb. 9, 1948 to the
date of the
court's ruling. The
from

litigation.
Subsequent to the decision, Otis

& Co. issued

the

following state¬

of Condition, June 30,1931

President

RESOURCES
THOMAS P. JERMAN
Vice-President

Cash

on

Hand, in Federal Reserve Bank, and Due from

Banks and Bankers

DIRECTORS
Chairman

GEORGE G. ALLEN

of the Board, Duke Power Company

U. S. Government

i

....

Obligations

.

•

«

•

•

•

I

•

t

a

•

•

I

I

$

I

Loans and Bills Purchased

.

.

Public Securities

•

.

84,653,129.86

.

657,873,094.08
1,002,542,314.87

9,000,000.00

1,262,061,786.33

■!

■<

;Chairman,

F. W. CHARSKE

Executive Committee,
Union Pacific

•

.

.

Railroad Company

Stock of Federal Reserve Bank

W. PALEN CONWAY

Other Securities and
President,

CHARLES P. COOPER

The Presbyterian Hospital
in the City of New York

WINTHROP M. CRANE, JR.

President,

Credits Granted

on

Obligations

15,107,345.26

•

.

Chairman
of the Board,
The Columbia Gas System, Inc.

.

.

Real Estate Bonds and

Bank Premises

.

'•<

§:,!

■

r

"

#

•

r
f

.

.

\<

19,582,361.19

Mortgages

r

167,806,577.62

m
mm

I

5,002,929.63

.

.

.

.

.

#

.

*

.

•

.

.

•

•

.

.

•

•

•

•

16,379.99

.

.

*

I

•

I

»

•

$3,095,303,082.52

ment:

"Otis

&

Co.

is

that

proud

it

resolutely refused to be a party
to Henry and Edgar Kaiser's at¬
tempted raid
on
the
investing
public in 1948. We will, of course,
appeal this decision, which it will
be

recalled

of

the

is

the

decision

Federal

Judge

exact

opposite

handed

down

Morris,

with

by
the

identical facts before him.
"We
will
for

their

extract
on

confident

are

finally

be

Kaisers

the

brought

ill-advised

to

book

attempt

to

$11,700,000 from investors

the basis of the false and mis¬

leading Kaiser-Frazer prospectus
and
the
heavily padded profit
statement

that

they presented to
the underwriters and the public.
"Owners

the

of

857,000,000

of

Kaiser-Frazer stock issued in 1945
and

1946

have

seen

their

invest¬

ment all but wiped out by Kaiser
mismanagement and extravagance,
while they have had no return on

their investment.

of Davis Polk

JOHN W. DAVIS

Wardwell Sunderland & Kiendl

RAYMOND C. GAUGLER President,
American Cyanamid Company

under

proof positive that the

Kaiser

cannot

succeed

domination.

"Otis & Co. had nothing what¬
soever

to

do

with

the

suit. Mr. Masterson is




a

Masterson

highly

fa

mm

¥
m '//

i/Mm

'

'

'

LIABILITIES

Capital

•

•

•

•

•

•

•

$100,000,000.00

•

JOHN A. HARTFORD
Chairman
of the Board, The Great Atlantic &
Pacific Tea Company
CORNELIUS F. KELLEY
Chairman
of the Board,
Anaconda Copper Mining Company
Chairman
of the Board,
The Af. W. Kellogg Company

MORRIS W. KELLOGG

President

WILLIAM L. KLEITZ

CHARLES S. MUNSON

Chairman
of the Board,

Undivided Profits
Total

Deposits

.

.

.

Capital Funds

•

•

•

•

•

Less: Own

.

^

77,110,235.25

•

•

•

•

.

.

.

.

•

•

i

•

•

»

•

•

•

«

•

•

•

Foreign Funds Borrowed
Acceptances

f

200,000,000.00

Surplus Fund

LEWIS GAWTRY

•

•

I
^

■

Investment

re

P

$

377,110,235.25

li

2,635,312,439.97
225,000.00

$ 19,250,559.22

.

i,

$
Dividend

t i

16,221,389.73

3,000,000.00

Payable July 16, 1951

of Roosevelt & Son
CARROL M. SHANKS
President,
The Prudential Insurance Company

Items in Transit with

Accounts

2,250,991.21

Payable, Reserve for

Total Liabilities

Illinois Central Railroad Company

THOMAS J. WATSON

Foreign Branches

Expenses, Taxes, etc.

•

•
.

•

61,183,026.36

•

•

•

.

•

.

.

.

•

82,65 5,407.30
$3,095,303,082.52

Chairman

of the Board, International
Business Machines Corporation
ROBERT W. WOODRUFF
Chairman, Executive Committee,
The Coca-Cola Company

$565,479,664.47 in the above statement are pledged to qualify for
fiduciary powers, to secure public moneys as required by law, and for other purposes.
Securities curried

at

Member Federal Deposit Insurance Corporation

,

re¬

'i

*

3,029,169.49

......

Retired

GEORGE E. ROOSEVELT

-

v

Acceptances Held for

Air Reduction Company, Inc.

WILLIAM C. POTTER

of America

simply

%
2? ',/e

The J. G. White Engineering Corporation
WALTER S, FRANKLIN
President,
The Pennsylvania Railroad Company

EUGENE W. STETSON
Chairman,
Executive Committee,

are

:

President,

GANO DUNN

operating losses of more than
$39,000,000 in 1949 and $13,000,000
company

b

1 r
/

Total Resources

CHARLES E. DUNLAP
President,
Berwind-White Coal Mining Company

Kaiser-Frazer's

in 1950

Other Real Estate

IB
Pi
f'4-

7,453,977.47

.

Crane & Co., Inc., Dalton, Mass.

STUART M. CROCKER

I

<

%

V.

Accrued Interest and Accounts

Receivable

f/-

I'

V

32,009,763.84

Acceptances

'{I *
1

-

I

J.LUTHER CLEVELAND Chairman
of the Board

award also includes costs incident

the

Condensed Statement

KLEITZ ""

WILLIAM L.

the

of

complete

underwrite

to

issue

to

44th St.

Otis & Co.

higher court.

a

&

at

decision will be appealed to

says

a

Madison Ave.

ROCKEFELLER CENTER OFFICE

MADISON AVE. OFFICE

Fifth Ave.

MAIN OFFICE

\

■

18

The Commercial and Financial Chronicle

(168)

Continued

Quinby Merges Two
Our

Stock Purchase Plans
ROCHESTER, N. Y.

Reporter

H. Dean

—

Quinby, Jr., President of Quinby

Du

implications,

in

busi¬

this

of

with

Quinby & Co.,
sole

a

pro¬

prietorship,

sidered

Stock

of
Dean

H.

Ko¬

Quinoy, Jr.

arrangement,
which makes the
corporation sole sponsor and un¬
derwriter of both Plans, not only
eliminates
tions

paves

Directors of the

corporation are
Sherman Farnham, Vice-President
and Secretary, and Sherwood W.
Smith, in addition to Mr. Quinby.

There

but

properly deductible
"non-business expenses" for Fed¬
eral income tax purposes.

men

and wom¬

have adopted The Quinby Plan
its establishment in 1938.

en

since
The

who

2,100

Plan since
Invest
Kodak

have

joined

the

than

at

$6,000,000' in

and

within

with

Eenner &

Merrill

time

same

affili-

as

a

variance of opinion

whole is concerned.

a

as

Some

far

as

in the

financial

district

seem

the

firmer

a

market is

also

looked

for

in

the commercial banks

soon as

scale.,

,

.

are

in

a

fellow-countrymen,

that life

and

in

two

world

its

it

is

I

.

only,

can

the

but

latest

Cites Russian Aggressions

on

a

so

institutions
the

and

gle vvith Soviet Russia.
We

have

tempt

blockade

MUNICIPAL

Berlin, to

continue- to

ing to reports,
about

come

bellwether

a

somewhat increased taking

The

have

•

the. near-eligible

group,

partially-exempts, particularly the'

£een. making-

a

-

•

on*

<

y

last .three maturities,

not unsatisfactory showing, with' the larger

deposit banks again the leaders 'in acquiring these
The

rhid-west

obligations.
institutions, according to reports, have been very

much interested in the

bonds,
been

although

2%s, and the 1960/65s.

awaiting

the

Public

State and municipal

Housing

financing, -have !

finding' homes in trust accounts.

INCORPORATED

(Special to The Financial Chronicle)

HARTFORD, Conn. -—Lewis E.

did

not

the

last

proportion

of

spending three
proportion of its

was

great

a

armaments

on

Fahnestock Adds
(Special to The Financial Chronicle)

NEW

of

the

on

Defense

last December,

Congress

job

Di¬

as

Mobilization

the President and
me
the tools to

gave

work with.

I needed every one

them

still do.

and

work

I

effectively

cuffs

the

But

with

me

I

of

cannot

the

hand¬

groups

pressure

forging for

are

now.

They won't quibble at the bill
to

provide for

refuse

to

to

necessary

security

our

the

make

the

pay

—

or

sacrifices

bill.

whole-heartedly

They
the

accept

controls they hate in normal times
insure the safety of the na¬

tion.

Those

are

world

rent

the decisions the
situation

cur¬

requires

of

fellow Americans, in this
month of July.

you, m,y
very

R.K. flgnew

App'td
By Marsh, McLennan

CHICAGO, 111.
Smith, Executive
Marsh

of

Hermon

—

D.

Vice-President

&

McLennan, Inc., 231
Street, has an¬
nounced the appoinment of Rich¬
ard K. Agnew, formerly Assistant
South

La

Salle

as Manager of the Life
Department of the Chicago office,

Mr. Agnew, a graduate of Knox
College, started in the life insur¬

statement

will

I

repeat a

General

by

Travelers' Peoria office to open a

office

sales

group
State

Illinois

of

Marshall.

ferred to

a

active

duty which

tic.

He

lost in

higher prices.

This

is

too

vast

a

of
sum

for

the

brought down to earth.

/ Thus

was

ant

Commander

Marsh &

vember of that

Mr.

Hodges

Marsh

&

He

made

$11.63 for them
The

of

cost

blankets

has

risen

from $9 to $21. The Garand rifle
from $40 to $64. The hedvy anti¬
aircraft
guns
from
$160,000
to

been

now

gress

further

tax

r

been ' with
since

1937.

Manager of the Life
1949

after

having

He had been

on a

leave/of

Financial

Chronicle)

GREENVILLE, S. C.
R.

Shives

has

become

with Joe McAlister

—

William

associated

Co., 8 Church

Street.

being

considered by Con¬
could be swallowed up by

Let

us

when

we

consider all these facts
are

and relax

sible

No¬

Joe McAlister Adds

by

increase

with

on

year.

McLennan

(Special to The

The

started

Assistant Manager for four

years:

000.
The two tax increases yoted

October

absence for several months due to
illness prior to his retirement,

$250,000.
The General
Pattontype tank from $193,000 to $240,-

costs.

was

and

has

Department in

Wool shirts

in

McLennan, Inc.,

pair of combat boots cost $5.22 be¬
now.

South Atlan¬

1945 with the rank of Lieuten¬

a

from $7.84 to $17.35.

com¬

took him into

and

released

fore Korea—the government pays
have gone up

was

S., Naval Reserve and in October
of that year, after four month
indoctrination, was assigned/to

year,

mind to grasp, but the added costs
are
easier to
understand when

he

1942

fiscal

been

dis¬

a

Lieutenant in the U.

the North

had

trans¬

was

supervisor.

group

missioned

he

the

Cook

Chicago and made

trict

1939

both

billion

of

In

He said that of the $35 billion au¬
thorized for defense in the past

$7

covering

outside

County.

•In March of

the United States.

program,

the Travelers Group Field Service
office at that point and then in
1936 he was transferred
to- the

Albert V. Fischer

HAVEN, Conn.—Harry Li rising prices.

Oakley is with Coburn & Middle- Dole has joined Fahnestock &
brook, Inc., 100 Trumbull Street. Company, 205 Church Street. He
He
was
formerly with Tifft was previously with Smith, Ram¬
Brothers.
say & Co.

business in 1929 in the home

ance

office of The Travelers Insurance

as

Congress last year have been vir¬
tually nullified by increases in

& Co.
Joins Cobum Middlebrook

Union
as

defense

there has been

in the June 15 1959/62s.

the

1946

,

after

Just to give you an idea of what
inflation has already done to our

Although the 1962/67 is still the
restricted

Russia

Soviet national income devoted to

was

not unimportant amount of these purchases have

through switches.
or

In

war.

national income

acquired.

acquire the 1952# eligible tap' bonds, and, accord-

that

demobilize

times

ticularly looking to the not distant future when better prices are
expected in the longer Treasuries'. Those that are able to do so "
-

.

took

in

know

Soviet

Spot buying and switches appear to have assumed some im- v
portance again, because there is still a tendency among owners
of government bonds, to attempt to
improve their positions, par¬

and

at¬

Greece,
to
win 'political

military expenditures was twice
as
high as in the United States.
In the following four years, the

far, but in somewhat increased volume from
in tlie l956'/58"s, the l956/59s and the
long¬

were

fight infla¬

Italy and France, to Co., Hartford, Conn. He was trans¬
Malaya and Indo-China.
ferred to Seattle in 1934 to head

We

'

Commuhists

seen

cqnquer

'to

really

case

obligations that

to

lamp by which my feet are succeeding W. Carson Hodges who
guided, and that is the lamp of has retired due to ill health. How¬
experience."
Our
bitter
and ard I. Potter, Vice-President, will
bloody experience since the sec¬ continue as heretofore to super¬
ond World War ended has shown vise the general activities of the
that we cannot relax in the strug¬ Life Department.

larger '

prices/it is indicated, have been satisfactory

is

one

deposit banks have been in the market in not

large amounts

which

That is why

Manager,

<

Patfick Henry said: "I have but

eligible bond. .The thin.market in these three issues has not
helped these purchasers too much, because there is still a defi¬
nite tendency to sh'y aVay from* them when quotations are marked
up. Nonetheless, considerable success has been reported by these

STATE




believe

free world.

Recent Market Transactions

U. S. TREASURY!

HAncock 6-6463

can't

I

in a continuing series
designed to weaken the

of actions

est

WHitehall 5-1200

witnessed

I have

wars.

that

maneuver

r

Out-of-town

BOSTON 9

I' am
before in

ever

long-term plans.

believe

.

.

what has been the

45 Milk Street

rector

that Soviet Russia, in coming out
for a truce in Korea, has altered

certain of the

position to do it

and

"

When I

in

men

to

worried than

seize

too

Street

her

of

life about America's safety—

my

,

banks have been buyers of the aforementioned issues,
though there have been borrowings in order to acquire these

Co., Inc., of St. Louis.

Broad

blood

only

M|y
more

securities.

J NEW ORLEANS, La. — Joseph
w. Mouney is now with Slayton

continue

command.

the

fall asleep when
the fighting there is over?

govern¬

It is the belief of this group that a definite extension
of maturities is being undertaken and this will be broadened as

is

—to

victories

even

(Special to The Financial Chronicle)

NEW YORK 5

must

we

its might only to go
in the process?
And
will
it profit America to

deposit

15

;

it

up

1956/58s, the 1956/59s?' the September, ,1967/72s and the longer
partials should do better market-wise. It is reported that certain '

With Slayton & Co.

That

tion—domestic enemy number one
—with
all
the
weapons
at our

will

Korea

the govern¬

hold the belief that

to ^believe

embarked

well under way.

now

shed

obligations, especially the ones that will be available
purchase by the commercial banks next year. It is expected,
with the passing'of tight "money, the
eligibles, especially the,

Beane, 301 Montgomery

Aubrey G. Lanston

have

we

profit America to

will

bankrupt

non-bank

Lynch, Pierce,

SECURITIES

tremendously
kind of sand¬

bounds.

build

for

Street.

&

increase

strongest

What

.

.ated

will

the

bags will be needed to keep them

developing a firm undertone because of increased
taking by investors, and this in their opinion should result in
gradually improved quotations in a market whch should be less on
the defensive, with the passing of time. This idea seems to
apply
more to the eligibles than to the restricted
obligations, but at the

FRANCISCO, Calif.—Betty
become

civilian

sures

because

Others

(Special to The Financial Chronicle)

has

time, the production
goods will diminish:

same

future.

Americans
aren't
quitters.
If
Meantime, ' people
will
have they understand the grave dan¬
more money in their pockets from
gers
that confront our country,
defense industry pay checks and ! they won't quit on a program de¬
there
will
be fewer articles
to signed to promote
our
military
buy. Therefore, inflationary pres¬ might, quickly and adequately.

ment market is

Silverman

be

the

of

withdrew

Du Pont stocks in this

With Merrill Lynch Co.

"W.

will

being looked for, with a mixture of professionalism, in¬
vestment buying and official support making this possible.

manner.

SAN

Soon these industries
in full production while,

up.

what is

1945 have arranged to

more

or

defense

for

tooling

Viewpoints Vary

be a leveling off in quotations around current
the large institutions, which have been sellers,
temporarily, are getting ready to, again let out
Treasuries in order to get funds for other investments.. So far this
selling has been on a reduced basis, but it is indicated it could be
stepped up if buyers were inclined to make larger commitments.
Liquidation of this type must be done, and it is of a continuing
nature, for a time at least, and this is what tends to temper the
feelings of certain followers of the money markets. On the other
hand, there are no opinions among this group that quotations
will be unduly depressed by the anticipated liquidation.
An or¬
derly market confined to recently established trading areas is

levels,

now

| More than 2,700

huge government
production

our

now,

orders

have been in the blueprint stage.
Our defense industries have been

gaining supporters especially in the.,

be

Up

future—perhaps in

immediate

why we must go ahead with the
preparedness program on which

inflation

get their severest test.

until

are

there is likely to

long-range study
tax rulings.
This

a

study makes it appear that all fees
which support the services of the
are

to

to be

seems

ment market

to The Quinby
revealed by the recent "

importance

Plan

appears

Market

[An interesting fact of consider¬
is

direction

entering a pe¬
safeguards

now

are

trouble in the

the

what

cover¬
ing $2,500,000 in each Plan be¬
came effective July 5,
1951.

Plan

either

ity preference category, so the additional offering of Treasury
bills is supplying a ddmand that is really existent. It is also the
cheapest way to raise money.

|Registration statements

completion of
of applicable

in

moves

in

now

Korean

began.

we

when

will

con¬

Treasury

Plan to other "blue chip"

able

startling

no

is

market

government

jecture, but it is believed in some quarters the Secretary of the
may pick up between $2 billion and $2^2
billion in
additional funds, which should take part of the strain off the
Treasury's finances. The market is still very much in the liquid¬

for ex/tension of The Qunby
stocks.

way

the

riod

the

after

occurred

But

The continued offering of $200,000,000 additional each week of
Treasury bills indicates the government is expecting heavy drains
on
its cash position, because of enlarged defense expenditures.
How much will be raised by this method is a matter of con¬

duplica¬
the

unnecessary

operation but

in

in

undertone

that

invasion

limits

lengthening
eligibles.

This

Co.

dak

a

these securities.
Backing and filling within
appears to be what most operators in the money
markets are looking for. Nonetheless, investors seem to be taking
somewhat larger bites, and this is not exactly an adverse devel¬
opment. Although short-term r^tes are bouncing around there is
still a lively demand for the"so-called liquidity issues. Maturity-

lation of Com¬

Eastman

long

favorable,

expected

recent

Accumu¬

mon

too

Although the

which, since
1938, has been
sponsor of the
Quinby Plan
for

not

period this should be reflected in the money
markets and the government security market. Although no im¬
portant changes are looked for as far as the policies of the
monetary authorities are concerned, it is believed a gradual lift¬
ing of the inflationary pressure from the outside would be bound
to have a salutary effect in time upon the government market.

combination

ness

as

conflict could retard and slow down the inflationary forces, and

announced the

lagged

general advance.
Since February, there has been
a
general leveling-off of prices.
This is due to the general freeze
and succeeding price orders, and
to the end of the panic buying

the government bond market is concerned.
It is believed in certain quarters that the ending of the Korean

Co.,

far

as

had

which

behind the

The Korean cease-fire and armistice could have far-reaching

the

Pont

*

Wilson Pleads for More Controls
commodities

Co., Inc., sponsor of The Quinby
Plan for Accumulation of Common
of

4

page

Thursday, July 12, 1951

.

.

By JOHN T. CHIPPENDALE, JR.

&

Stock

on

from

.

as

Korean

inclined to lean back
a

result of

truce.

the

They

pos¬

Albert
the

New

V.

Fischer, member of

York

Stock

Exchange,

passed away at the age of 60 of

spell heart attack.

a

Volume 174

Number 5028

The Commercial and Financial Chronicle

(167)

other charges against earnings in the case of the New York
banks,
a
substantial increase in addition to valuation reserves was the

Bank and Insurance Stocks

principal factor in reducing the taxable income
banks.

In both central

The ratios

By

H. E.

This Week

JOHNSON

percentage earned

Bank Stocks

—

These

The

higher operating earnings of member banks shown for
resulted primarily from the increase in earnings on loans.

1950

This information together with

operations for last
eral

Reserve

year was

detailed analysis of member bank

a

recently published in the May Fed¬
'Y/

Bulletin.

Net profits for 1950, after adjustments for recoveries and prof¬

v,

its,

losses

andcharge-offs

and

additions

valuation

to

amounted to $781 million for the 6,873 member banks

reserves

of the Fed¬

eral Reserve System as compared with $686 million for
6,892 banks
a
year earlier.
.

An increase of 23.4%

of

return

these

on

in

net

taken

the

year

article

in

Increase
Factors

in

net

year.

should

As

on

the

With

above table

also

the Federal Reserve

capital accounts has increased.

ing dissolution of the old firm of

general trends should continue into the current
result higher earnings from loans and investments

more

the

name

on

July

are

in

earnings

in

other

loans

on

L. L. Born Opens

Jack S. Lewis

Street, New York City, specializ- in the Russ Building to
ing in mutual funds.
the securities business.

engage in

Factors

4,000,000

reserves

Total

+$325,000,000

decreasing net profits—

Increases in

t

131,000,000
94,000,000
6,000,000

expenses-

Increases in accruals for income taxes
Increases in

other losses, net

Total

$231,000,000

While all operating costs increased during the
year, most of
the increase in expenses resulted from wage and salary payments.

This reflected both
in the average

larger number of employees and

a

OF

increase

an

CITY OF NEW YORK

THE

salary payment.

The higher taxes were also an important factor in
limiting
the gain in earnings. Only a few of the member banks were af¬
fected by the excess profits tax. The higher tax
liability resulted

primarily from

higher taxable income and

a

increase

an

in

STATEMENT OF CONDITION, JUNE 30, 1951

the

corporate tax rates.
These

general

same

factors affected

York and Chicago member banks.

the

U. S. Government

Central Reserve City Banks

—New York—

15150

$148

On other securities

All Member

—Chicago-j-

m«)

$145

On U. S. Govt, securities

1950

■

v.m

$48

Banks

1050

$4-3

State and

1940

.

$865

$859

31

other

26

12

11

190

189

48

46

1,634

1,427

575

531

121

114

24

$512

$476

$132

21

Municipal Securities

Salaries

wages

170

164

37

37

1,000

10

8

11

11

271

261

118

110

30

31

749

Mortgages

702

.

•••••••

•

••

50,842,286.37

•••••••••«

1,892,132,154.45

$282

$298

__

$78

$78 $2,020 $1,889

before

earns,

income taxes

$214

and

Losses

$194

$54

•

249,577,266.11

$27

$28

$13

$15

$175

.

.

.

.

.

•

profits.

19

23

7

8

149

Acceptance Liability

33

9

-1

121

$166

$50

$53 $1,150

$961

69

55

15

34,963,268.80

•••••••••

28,495,426.26

.

.

.

Profits before income taxes
Taxes on net income....

Net profits

•

.

.

•

•

•

11

369

275

$145

$111

$35

,*$42:

$781

$686

$89

$82

$16

| $15

$346

$313

declared—,

$5,227,895,684.58
LIABILITIES

Deposits
Dividend

.

•

•

•

•

•

t,793,337,782.27

•

•

•

Y

Payable August 1, 1951.

Reserves—Taxes and

Expenses.

•

•

•

•

.

•

*l

.

.

•

.

•

••

income taxes to average
8.40

42.775.933.95

*■

11.30

9.90r

Less: In

'

413.20

12.20

Portfolio

•

«

•*

•

•

«

•

•

•

•

>'s

6.20

4.80

7.40

9.10

8.30

7.60

Average

0.54

0.43

0.49

0.62

0.57

0.53

2.62

2.46

2.85

2.82

4.17

Capital Funds:

4.04

total

stances.

assets._

loans to avg.

—

While

_

COMPARISON

&

and

profits

ANALYSIS

17 N. Y.

in all in¬

sufficient to offset

were

Capital Stock.

(7,400,000 Shares-$ 15 Par)

earnings before income taxes increased
recoveries

6,715,812.00

•

-■J

Avg. total capital accts.

Net current

18,116,396.28

■

Acceptances Outstanding
1

9.20

capital accounts.^
Net profits to—

on

i

•

I

before

earns,

total

holdings

4

20.233.497.94

•
!■>.»-

Other Liabilities

•

Surplus.

.

.

.

Undivided Profits

•
,

$111,000,000.00
„

.

0

.

.

*

,

«

-

v

189,000,000.00
57,187,886,14

357,187,886.14

NATIONAL BANK
of INDIA, LIMITED

City

Bank Stocks

$5,227,895,684.58

Bankers to the Government in

Kenya Colony and Uganda

Second Quarter

+

Available

July

Head

Members

New

York

130 BROADWAY,

NEW YORK 5, N. Y.

Telephone: BArclay 7-3500
Bell

Teletype—NY

1-1248-49

(L. A. Gibbs, Manager Trading Dept.)

Specialists in Bank Stocks




V :'•

-.

.Y

in

Colony,

Laird, Bissell & Meeds
Exchange
Curb Exchange

26, Bishopsgate,
London, E. C.

'

•

Branches

Members New York Stock

Office:

,

9

India, Burma, Ceylon, Kenya
Kerioho, Kenya, and Aden
and

.

United States Government and other securities carried
to secure

public and

trust

at

deposits and for other purposes

$581,119,175 00

as

Paid-up

Zanzibar

The Bank

Capital

£2,000,000

Fund.;
conducts every

banking

and

£2,500,000
description of
business

exchange

Trusteeships and Executorships
also

undertaken

were

pledged

required or permitted by law.

Subscribed Capital„__£4,000,000
Reserve

•

2,960,000.00

•

-t

Ratios (percent):

Earnings

9,705,902.60

.

125

$214

.

Banking Houses

166

_

reserves

Cash dividends

Customers'

valuation

to

Net current

9,839,383.98.

•

$155

charge-offs____

and

.

$45 $1,245 $1,097

7

Recoveries

addition

•

Other Assets

others

Net current

192,736,502.02

.

926

deposits

and
on

.

.

Accrued Interest Receivable.

Interest

1,380,413,671.13

$123 $3,265 $2,986

Expenses:

Total

Obligations

Other Securities

Loans•••

Total

$1,379,189,822.86

169

215

On loans

Cash and Due from Banks
I

(Dollar Amounts in Millions)

Earnings:

RESOURCES

operations of New

The

following table shows the
earnings of the member banks in these two cities and those of all
member banks for the past two years.

Opens

business from offices in the Indi¬
ana Bank
Building.

207,000,000
72,000,000
18,000,000
24,000,000

Decreases in net additions to valuation

1951.

SAN FRANCISCO, Calif.—LeoEVANSV.TLLE, Ind. — Jack S.
nard L. Born has opened offices Lew is is engaging in the securities

$95,000,000

earnings

1,

at 29 Broad¬

New York City.
On July 19 Frank Feldman will
become a partner in the firm.
way,

the year should show a further
gain.

With Baron G. Helbig

same

The firm's offices

than offset increases in expenses, and net profits for

Gerrard J. Jackman has joined
Baron G. Helbig & Co., 60 Broad

a

increasing net profits—

Increase

Net

formation of

same

a

Stock

Exchange, announce
new
partnership of
Leopold Spingarn & Co., follow¬

of

some

loans, the

Change from 1!>49

+

Increase in profits on securities sold
Decreases in net losses on loans

All

on

Bulletin.

profits

Increase

All

illustrate

higher rate of return

a

York

contributing to the gain
shown in the following tabulation

are

FACTOR

—

in

S. Spingarn. and Louis
Rocker, member of the New

P.

Other factors

source.

profits for the
from

in outstanding loans and a higher rate
was
the principal reason for the larger

loans

earnings from this

shown

Spingarn Partnership

Howard

Chicago
cities cash dividends were higher.

reserve

the foregoing changes.

New

the

of

19

Member Federal Deposit Insurance Corporation

The Commercial and Financial Chronicle

terials, the consensus seems to be
that for the next few months at
least there will be a downward

Canadian Securities
By WILLIAM J.

pressure on prices as tighter credit
policies force retailers to reduce

inventories. Businessmen are pay¬

McKAY

attention

to

price

the

ing

financial de¬

The economic and

velopments in Canada during the
first half of 1951 were, on the

It was marked

whole, favorable.

by important expansion m indus¬
trial and mining activities, fore¬

maximum, reached
in 1941.
Since the beginning of
1948,
Canadian
gold producers
have
benefited
by
differential
subsidies granted by the Federal
the

previous

Government and averaging Can.
which was the oil $3.34 ner ounce in 1948 and Can.
$3,50 in 1949. After the devalua¬
explorations in Alberta Province.
This development has
been al¬ tion had sent up the price of gold,
the subsidies were reduced some¬
ready fully publicized and its sig¬
what
(with effect from Jan 1,
nificance was well pointed out by
the Minister of Mines and Min¬ 1950), and it was expected that
erals of Alberta in
the special the average for the year 1950
would work out at Can. $2.27. The
supplement
of the "Chronicle"
limit
which
the original
of June 28, commemorating the time
35th
Annual Convention of the "Gold Mining Assistance Act of
Investment Dealers'
Association 1948" had fixed for the granting
of Canada.
The rapidly expand¬ of subsidies was extended from
ing
oil production
of Canada the end of 1950 to December

most

among

in these 1951, but the scale of payments
of was somewhat revised, as from
balancing the trade position of the October 1950, upon the introduc¬
Dominion with the United States, tion of a free rate for the Cana¬
and thus relieve the unfavorable dian dollar, which led to a certain
exchange
position from
which decline in the price of gold. Un¬
Canada has suffered during recent der the new scheme in its initial
form, a reduction of the propor¬
years. It may be expected, there¬
fore,
that the two neighboring tion of output eligible for assist¬
important

especially

times, since it will be a means

countries will be able to conduct

without the

their trade operations

handicap of unequal and fluctu¬
ating exchange rates.
J

increasing gold and
production is also

Canada's

mineral

other

another factor that gives further

hope of improvement in the for¬
eign exchange situation of the Do¬
An 8% increase in gold

minion.

1950 reflected the
rising trend which

in

production

continuance of

a

had been evident since the end of
the

and which brought out¬

war

put in that year to within 17% of

close

war

in the United States, but

far there is believed to be no

indication

in

and

it

will

spread

During

couple

past

the

there

months

been

has

of

consider¬

able

crying over the supposed
plight of the nation's railroads.
ada will supply France with 2,500
Disaster has been predicted freely
tons of newsprint.
It was stated
(if not overtly at least in market
that some cutback in the North
action) because of the squeeze be¬
American consumption of Cana¬
ing exerted by the continuing up¬
dian newsprint may be necessary
ward spiral of wages on the one
to meet emergency allocations for
hand and the inflexible rate struc¬
NATO countries. On June 15, Sir
ture on the other.
There can ob¬
Hartley Shawcross announced that
viously be no quarrel with the
the
British
Newsprint
Supply
contention that the railroads are
Company #has been authorized to in need
of, and fully deserve,
It has been announced that Can¬

conclude

new

contracts with Can¬

,

with

International

the

the Canadian
expansion in the current

go

Railroads

that

net

in¬

also greater than total annual

of the eight
inclusive, and

in
1932-1939,

gross revenues

Frank J. Smith With
S. Weinberg & Co.

years

in

about

any

with

line

revenues

for

the full years 1931 and 1940. It
true&that there has also been

is

$3,000,000,000,

the

unfavorable

balance

ran

about $300,000,000

charges and taxes, at around $197

—about

20

year

balance of

the unfavorable

trade, particularly with the United

Provincial

In

a

total trade for the first five

months

Municipal

Corporation

valued

1951

of

to

times

at

about

Canada

normally is a surplusearning country, selling more to
the world than she

A. E. Ames & Co.
incorporated
I

Two Wall Street

These

JBomIou 9, Mans.

ROOM FOR GROWTH—
IN CANADA!
Canada's thriving
|conomy and
sound
financial policies lend
themselves favourably to invest¬
Our

Canadian
benefit

able

to

long experience with
industry will be of
you in selecting suit¬

investments

in

this

fast

,

Exchange

|

The Investment Dealers'' Association

830

of Canada

|
Bay St. Toronto, Canada

tcl.miiion

Braatford

Sudbury

Windsor

Brampton




are

Until

the

rapid rate of indus¬
Canada

subsides,

is

now

it

is

expe¬

expected

that the adverse trade balance will

J^Lllner, Rois & Co»
Members:

developments

300,000, slightly lower than last
year's
$48,700,000.
Imports
in¬
creased to $43,500,000 from $36,300,000, giving Canada a surplus
of $3,800,000,
a
decline from a
surplus of $12,400,000 last year.

riencing

Correspondence invited

,

two

trialization

growing neighbour.

The Toronto Stock

buys.

wood W. Bump is

million

for

In

1951.

net

The

like

income

traffic

months

five

the

the

$133 million.

engaging in the

securities business from offices at

this

have the retroactive mail
pay windfall they accrued in De¬
cember last year.
Even without
that, however, and granting a rea¬
sonably fair rate increase, the

year

carriers should be able to
least

close

million

to

matching

net income

of

at

come

the

1950.

$783
This,

in

turn, should mean some very
pleasing dividend news later in

DETROIT,

Mich.

Party

The

will

program

and

will

—

start

at

9

include

golf, with
competition for the Michigan In¬
vestors Cup, horseshoes, putting
contests, winding up with a buffet
a.m.

dinner

which

at

prizes

for

the

various events will be awarded.

Arrangements
rection

of

are

under the di¬

Victor

P.

Dhooge,

Chairman, Manley, Bennet & Co.;
Horatio
N.
Cannon, McDonaldMoore & Co.; T. Norris

Hitchman,

Kenower, MacArthur &• Co.; and
Robert

D.

Savage, Crouse & Co.

of

Banning Partner in
Shearson, Hammill Go.
Announcement

by

Shearson,

is

made

Hammill

&

today
Co.,

members of New York Stock Ex¬

change, that William P. Banning
period a year has become
a general partner of
amounted
to the firm
in their Los Angeles of¬

level

is

definitely

fice,

520

South

Grand

Avenue.

continue, though higher prices for
Canadian forest, agricultural and
mineral products and a larger vol¬
ume of exports of these materials
in the future may offset this ten¬
dency.
Both retail and wholesale
in Canada

seem

to be

prices
leveling off,
community

and while the business

anticipates

scattered

price

in¬

flattening out.

Pflueger, of Pflueger & Baer- ricultural

wald,

was

elected to regular

mem¬

crops

are

smaller

offices.

this

than last. Finally, there is
bership
in
the
San
Francisco apparently little possibility that
Stock Exchange, it was announced
any
additional freight rate in¬
by Ronald E. Kaehier, President creases will be forthcoming in the
of the
Exchange.
Mr. Pflueger immediate future. Considering all
acquired the membership by of these factors it is possible that

partly responsible for the climb in
imports from the U. S. to $277,000,000 in
May, up $81,500,000
from $195,500,000 in May last year.
Exports in
the
same
month
failed to keep pace. Shipments to
transfer
from
Ernst
Baerwald,
the U. S. totaled $211,500,000, up
who is retiring as a general part¬
$34,200,000 from $177,300,000, re¬
ner
in the firm; however, Mr.
sulting in a deficit of $65,500,000,
Baerwald will continue as a lim¬
sharply up from last year's $18,ited partner.
.
200,000.
v
,
?
Mr. Pflueger, a native of San
In trade with Britain, exports
Francisco,
began
his
business
also declined.
Sales totaled $47,-

1-1045

fifty CoiigreN* Street

ment.

'SANTA MONICA, Calif.—Sher¬

A.

New York 5, N. Y.

NY

npind

not

Mr.
Banning
joined
Shearson,
While car loadings
Hammill & Co. in 1948 when that
225 Santa Monica Boulevard. He in June continued above the level
This year, however, Canada is
firm absorbed Bogaidus, Frost &
was formerly with Lester &
Co., of a year ago the rate of increase
in the midst of unprecedented in¬
Banning.
dustrial
expansion, resulting in Walston, Hoffman & Goodwin and was appreciably less than it had
A member of a pioneer Califor¬
Merrill Lynch, Pierce, Fenner & been in earlier months. Presum¬
huge purchases of machinery and
nia family, he has been associated
Beane.
ably
the cut-backs in
certain
equipment from the United States
with the investment business for
civilian lines will continue and
and other countries.
In addition,
25 years and has been Regional
there is still a considerable lag
she is placing multi-million-dollar
3. F. Exchange Member
in the defense production sched¬ Manager for Shearson, Hammill
orders in the U. S. for defense
& Co.'s Los Angeles, Beverly Hills
SAN FRANCISCO, Calif.—Paul ules. In
addition, some of the ag¬
equipment.
and Pasadena

CANADIAN STOCKS

WORTH 4-2400

Bump Opens

Office in Santa Monica

ago

riod last year.

railroads will

S.

higher than the Sherwood W.

$14,300,000 deficit in the same pe¬

the

that

a

Weinberg & Co., 60 Wall St., sharp year-to-year increase in op¬
New
York
City, announce that erating costs so far this year. This
will be further aggravated by ad¬
Frank J. Smith, formerly with J.
ditional
cost-of-living wage in¬
Arthur Warner & Co. and Allen
creases called
for under existing
& Co.,
has become Manager of labor contracts.
Nevertheless, es¬
the Contact Department.
timates place
net income, after

States, continued.

thing that must be kept in
is

Reginald
come
of the Class I rail carriers MacArthur, Kenower, MacArthur
for the month of May amounted & Co., President of the Bond Club
of Detroit, announces the Annual
to
roundly
$50
million.
This
would represent an
increase of Summer Golf Party to be held at
some
$10 million from the like the Essex Golf and Country Club,
month
a
year earlier.
Aliso, it Sandwich, Ontario, July 20, 1951.
American

was

Notwithstanding

Government

with the

unsettled. !One

question still

Annua! Golf

nounced that

objection to this proposal.
industrial

tax

Bond Club of Detroit

make the
The question has been

Monetary Fund, which raised no

the full year, particularly

the three years

in

to

producers

allowing

to what net income will be for

as

higher freight rates. Also, there
525,000'tons of newsprint
is no question but that the ma¬ the year and early in 1952.
On
ending in 1954.
chinery for getting the necessary this basis a considerably stronger
Canada has promised 300,000 tons
market
should
be
rate increases is cumbersome and rail
possible
but cannot guarantee the rest.
over the intermediate term.
unduly lengthy.
In early June one of Canada's
Granting all of the above fac¬
largest newsprint producers an¬
tors it is notable that the face of
nounced that, effective July 1, the
the consistently dire predictions
price
of
newsprint would
be railroad
earnings do continue to
raised by $10 a ton. Other Cana¬
expand. It has recently been es¬
dian
producers
promptly
an¬
timated
by
the
Association of
they would
along
ada for

the

discussed

CANADIAN BONDS

that

the border.

across

Outlook for Rail Earnings and Dividends

thus
real

with this increase, which, in ef¬
maximum rates fect, lifts the price of newsprint
of assistance from Can. $16.00 to in New York to
$116 a ton, the
Can. $11.50per ounce was expected
highest in the last 30 years.
to lead to correspondingly smaller
This action brought protests from
total benefits for the producers. United
States
users
since 85%
But in March 1951 the Minister of of United States
newsprint comes
would be approximately $5 million
Finance announced that while the from
Canada,
and
Washington
reduction
in maximum rates called upon Canadian officials to greater than net realized in the
preceding month, April, 1951.
would continue to be applied, the
suspend the price increase until a
For the full five months through
proportion of output eligible for study of the situation had been
aid was being increased, these two made.
It
was
hinted
that
the May, 1951, gross operating reve¬
factors
roughly offsetting each United States might retaliate by nues of the Class I roads climbed
above $4 billion. This was a gain
other in their effect on total pay¬
slashing the volume of defense
ments.
This course of action has orders which this
of more than 20% compared with
country is plac¬
been chosen as an alternative to
the first five months of 1950.
It
ing in Canada.
ance

premium.

I

Thursday, July 12, 1951

.

of ma¬

shortages

to

due

creases

is

.

.

(168)

20

year

railroad

the'

earnings comparisons for

next

couple of months will be
less favorable than they have been

Gold, Freedman Go.
Formed in N. Y. C.
Max
ner

Freedman, formerly part¬
& Qo., and Leo

Ernest Smith

Gold,

member

of

the

New

York

Curb Exchange, formerly partner
past months.
While the early future outlook Chas. Weinstein & Co., announce
the formation of Gold, Freedman
for
railroad
earnings
may
be
somewhat uncertain, the prospects & Co., members of the New York
Curb
Exchange, 115 Broadway,
career
with the Humboldt Bank. for the fall appear to be distinctly
Certainly it appears New York Citv.
After its merger into the United promising.
reasonable to expect that by early
Security Bank & Trust Co., he
became Executive Vice-President September at the.latest a fairly

in

,

and in

firm

January of 1929 joined the

of

Max

I.

Koshland

&

Co.,
Baer¬

liberal

increase. in freight rates

will have
into

been approved

effect.

All

and put

indica¬
predecessor of Pilueger &
tions point to the likelihood that
wald.
Mr. Pflueger has been a
member of the Governing Board expanded defense production will,
of the San Francisco Stock Ex¬ by early fall, be taking up the
present slack in civilian produc¬
change and has served on all of
tion, and perhaps more. This is
its most important committees.
true regardless of the outcome of
the present talks in Korea.
Fi¬
With Putnam & Co.
nally, it is the general feeling
(Special to The Financial Chronicle)
among analysts that many of the
HARTFORD, Conn.—John Ray railroads will by that time be
Camp and G. Holbrook Barber, Jr. moderating their heavy mainte¬
are with Putnam & Co., 6 Central
nance programs.
It is rather difficult at this time
Row, members of the New York
Stock Exchange.
to make any definite predictions

Specialists in

present

RAILROAD

SECURITIES
Selected Situations at all Timet

i*c#

25 Broad Street

*

T

I

•

New York 4, N. Y.

Telephone BOwling Green 9-G400
Members Nat'l Assn. Securities Dealers, Inc.

Volume 174

,

Number 5028

.

.

.

The Commercial and Financial Chronicle

(169)

deal

Continued jrom jirst page

of

exaggeration in what has been

Washington during the past

As" We See

is thus

It

could

housetops daily. But it is also true that they are for the
most part merely ''harping on my daughter."
They are

now

The

year.

quite warranted—indeed,

we

coming out of
in the street

laid F. Rice

Opens
New Chicago Branch

man

do not

see

how he

avoid it—in
wondering Whether the "warnings"
emanating from the White House, and from many

CHICAGO, 111.—Daniel F. Rice
Company, members of the

and

others who take their orders from the White

saying just what they have been saying since the outibreak in Korea caught them flatfooted a year or more ago,
and, unfortunately for them, events have not to this time

House; are
not exaggerated. Far from
wishing to denounce those who
have been rebelling
recently, we find in much that they
have been saying a
healthy streak of hard common sense.

supported their analysis of the situation. It is indeed in
•substantial part because of all this sort of preaching dur¬

Quite evidently the people of this country will have
to make
up their own minds as to what is necessary in the

ing the past 12 months that the rank and file find it
"extraordinarily difficult to arrive-at definite and realistic

circumstances, and act accordingly.

'conclusions

at

this

time,
Past

Francis Adams
Blunders

Francis

>'

•'

July 8
It is

now

generally recognized that the United States
this country is now

the other countries with which

and

paid

Adams

of.

the

New

York

nninfwi

evident

Brazil Joint Commission for Eco-

enough that Mr. Stalin is no more to be trusted
was.
Equally clear is it that the Kremlin

has, and always has had, designs on much of the world's
surface and many

of the world's peoples,

did the Axis of World War II.

No

one

many more

than

would claim that

all will be sweetness and

light in international relations
forward—quite regardless of the outcome
conference now in process in Korea. We have

to?nnfM8\ha,drHSnedfrom
+3P~
pointed hoS? the iT^t
head of
United Statesnomic

fh

Development

Truman
way

he

to

May 2.

on

take

passed

up

by President

He

his

was

thoroughly fa-

miliar with South American

of the truce

nomic conditions.

plunged—or have plunged ourselves—into the whirl¬
pool of what is known as power politics, and we cannot
afford to forget that fact for one moment.
We

;

claim, and

the

Rubber

th„

N.

Y

.

r

He

Reserve

1933

wa<?

PipptPH

dent of the Curb in

1946

dem 01 the Cmb 111 1946*

was

Pickard is associated
as

account execu¬

This is the first branch

tablished

Chicago's Loop dis¬
stock exchange firm.

BlanckeNoyes Admitted
By Hemphill, Noyes
Blancke Noy.es has been admit¬

F

ted

limited

to

Hemphill,

Prpci

^

Noyes,

partnership
in
Graham, Par¬
Street, New

& Co., 15 Broad

sons

York

City, members of the New
Exchange.

York Stock

Hoppin Bros, to Admit

David Gadlow

eco-

head of

Company,

a

way,

York

admit

will

SAN

New York City, members of
New

the

Stock

B.

Exchange,

FRANCISCO, Calif.—David

Gadlow

has

opened offices at

110 Sutter Street to engage

Stebbins

Theodore E.

Opens

(Special to The Financial Chronicle)

securities business.

to limited partnership 011 Aug. 1.

keep reasserting, that we have no
no designs on any other land.
Generally speaking there is doubtless substance in these
disclaimers. The fact remains, however, that a good deal
of our foreign policy easily takes on the appearance of
the behavior of countries in the past which did have very
and

Bankers Trust Company

significant designs on other lands
More than that, we have repeatedly
announced to the world—and our action in Korea supports
our statements—that we intend to fight for the status quo
in all really important sections of the world. We prefer
to call it "resisting aggression" or something of the sort,
of course, but it is hardly distinguishable from a general
defense of status quo in most instances.
Now such policies as these carry very important im¬
and other

peoples.

We should certainly be silly not to face this
implications, if we really mean what we say,
are certainly not free from serious hazards to this country.
Throughout all history, the world at large has been no
respecter of the status quo. What we now call aggression
and imperialism has been the order of the day since the
dawn of history. It may well be questioned whether there
are more than a very few important countries which at

NEW YORK

CONDENSED STATEMENT OF CONDITION, JUNE 30. 1951

plications.
fact.

the bottom of their hearts
doctrine of

ours

are

determined that this

shall generally prevail.

The lack of

new

sup¬

port from other United Nations members in Korea is sig¬

call it realization of the Wilsonian dream of

a

war

for

have gone

we

so

we

far

course quickly
situations which the
our

our

have made it
now

so.

JAMES C. BRADY

in the face of
Kremlin

us

could

any

one

of

.

.

844,210,758.51

.

64,312,372.58

Municipal Securities

ELLSWORTH BUNKER
Director.
The National Sugar Refining Company

Other Securities and Investments

HENRY J. COCHRAN
Chairman, The Franklin Savings Bank

Accrued Interest and Accounts Receivable

.

Customers'Liability

.

30,448,803-98

....

5,811,898.57

President

WILLIAM B. GIVEN. JR.

on

Acceptances

.

.

21,851,478.49

easily create

in order to meet such

13,991,633.73

Banking Premises.

Chairman,

American Broke Shoe Company

$1,972,570,366.90

JOHN W. HANES
Vice President and Director,
Olin Industries, Inc.

Chairman, Executive Committee,
United Staler Lines Company
Vice President

ORIE K. KELLY

LIABILITIES

President,

FRED I. KENT

Council o) Sew York University
LEWIS A. LAPHAM
President, Amcriran-Hawaiian

Capital

Steamship Company

......

$: 30,000,000.00

WARD MELVILLE

100,000,000.00

Surplus

President, Melrillc Shoe Corporation
New Jersey

PAUL MOORE

Undivided Profits

THOMAS A. MORGAN
President and Chairman oj the Board,
The Sperry Corporation

.

.

Dividend Declared

.

37,924,224.42

$

167,924,224.42
1,500,000.00

........

JOHN M. OLIN
President, Olin Industries, Inc.

Reserve for Taxes,

C'hairman oj the Board,
Allied Stores Corporation

Accrued Expenses, etc.

Acceptances Outstanding

PHILIP D. REED
Chairman, General Eleetric Company
!

GEORGE A. SLOAN

1,757,797,746.84

Deposits

New Jersey

DANIEL E. POMEROY
B. EARL PUCKETT

8,892,620.35

.

$26,271,666.18

Less Amount in Portfolio

2,537,724.33

23,733,941.85

Chrysler Building, New York
WILLIAM T. TAYLOR
B.A.TOMPKINS
"f

.

Vice President

12,721,833.44

Other Liabilities

Senior Vice President

$1,972,570,366.90

....

.

THOMAS J. WATSON. JR.
Executive Vict Pretidtni,

International Business Machines Corporation

JUSTIN R. WHITING
President, Consumers Power Company

Securities in the above statement are carried in
annual

report to

Junt U>,

stockholders for the

3951, have been

year

deposited to

accordance with the method described in the

1950. Assets carried at $190,541,017.08 on

secure

deposits, including $155,168,373.49 of

United State;- Government deposits,

a

situation-adequately and effectively? That is the real
question. It is obvious enough that there has been a good




State and

Vice President

JOHN M. BUD1NGER

Member cjtbe
i Mutant t

just what is required of

.

.

President,

it would be difficult to

What Is Needed?
But

504,969,111.76

Brady Security & Realty Corporation

The fact is

benefit.

a

$

486,974,309.28

Loans and Bills Discounted.

to end

League of Nations concept and all the rest.
We are obliged to confess a little skepticism about all
this, but be that as it may, any such undertaking on our
part implies the necessity of being prepared to do what
we are constantly
shouting that we intend to do. We cer¬
tainly ignored this aspect of the case after World War II.
V We could scarcely have been less prepared when "aggres1 sion" broke out in Korea last summer. We are really not
even now
sufficiently armed to do some of the things
V we have been telling the world we would do. There can
be no doubt that in all these things our position is dif/ferent from what it has ever been in the past -^-dif¬
ferent, that is, because

......

U. S. Government Securities

j

Senior Vice President

FRANCIS S. BAER

we

all wars, the

dozen

^

Cullman Bros. Jnt

put the matter briefly and bluntly,

have cut
out a real job for ourselves as world policeman determined
to put an end to what we are pleased to term "aggression."
There are those who are now very proud of the fact that
we acted in such a
capacity in Korea. They keep saying
that we have now proved to the world that we are willing
to go to war if necessary to maintain the status quo in
some instances at least.
They seem to suppose that this
is a long, long step toward enduring world peace. They

change

Cash and Due from Banks
ALEX H. AKDREY
Executive Vict President

HOWARD S. CULLMAN

A Real Job

To

■

DIRECTORS

S. SLOAN COLT

nificant.

i that

ASSETS

Those

,

federal Deposit
Corporation

es¬

in

we

territorial ambitions

real ambitions and very

,

tive.

change, Mr. Truslow assisted in
the drawing up of the Securities
a,.*

M.

with the office

comi.

Stock

branch

a

West

Randolph
Street, in charge of Harry E. Rice.

Bernard

Hoppin Bros. & Co., 120 Broad-

from this time

been

for

188

at

trict by a

While acting as associate

Midwest

and

his

was on

duties when

away.

Mr. Truslow

office

50rld*;War 11 formed to exploit

,„e]

York

Exchanges have opened

s- Government/.agency, during'

HWl

closely associated blundered in supposing that Soviet rep¬
resentations at the war's end were in good faith.
It isj
than Herr Hitler

New

rL deTan^m f^,h American rubber *roduc-

en route to

President

Truslow

Trnslnw

21

and for other

purposes.

:<

in the

22

The Commercial and Financial Chronicle

(170)

There

are still about 1.3 billion tons of high-grade ore,
last about sixteen years if no new reserves are brought

Public

Utility Securities

There

By OWEN ELY

Minnesota Power &
Minnesota

Light

&

Power

Light serves a substantial part of the
central and northeastern part of the state—about 7,500 square
miles with a population of 275,000—and a subsidiary serves the
city of Superior, Wisconsin, near Duluth. The company's electric
system and that of its subsidiary are interconnected and integrated.
The major industry in this area is iron ore, about two-thirds
of all U. S. ore coming from the Mesabi, Vermilion and Cuyuna
Mines producing this ore-pre almost entirely electrified
with power purchased from the company. As a result about 48%
of the company's revenues are industrial, and only 25% residential.
The company is largely hydro and last year obtained 60% of
its output from water power and 40% from steam. Water conditions have been generally favorable this year and reservoirs are
currently about 95% full.
ranges.

American

Light Company, which formerly owned
84.6% of the company's common stock, distributed its holdings to
its own stockholders in February, 1950.
The earnings and divi¬
dend record has been approximately as follows:
&

Power

"

*•

-ygrowth—about 7%
since-the

3.91
3.12

2.01

3.40

2.20

1946

2.88

.39

1945

1.97

.19

—

1944_

1.35*

__

*1943

1.81*

1942

1.08*

1941

"

war.

♦Based

on

shares outstanding Dec. 31,

194S.

Exchange

on

a

rather generous

yield basis

7%%) possibly because of the company's heavy concentration of
companies, and the opinion held in some quarters

in Minnesota are being
This conclusion has perhaps been exaggerated.

high-grade

rapidly depleted.

iron

ore

5

page

The
about

over

than

more

reserves

NATIONAL BANK

Statement

lated

ST. LOUIS

of Condition, June 30, 1951

which

as proposed, an

for regu-

enues

determine

RESOURCES
''k

•

.

considered

earn

6%

costs, whereas the price of fuel

when

or

,

.

..

.

$124,830,735.31

U. S. Government Securities

128,380,001.03

Loans and Discounts

163,117,078.25

Partially Guaranteed

by U. S. Government

51,073,512.72

14,919,973.71

Other Bonds and Stocks

750,000.00

Stock in Federal Reserve Bank

Pf?Ya.^e c*ass A and B electric

1,272,790.00

and Fixtures

Customers' Liability, Letters

of Credit,
1,657,941.79

Acceptances, etc.

1,075,939.48

Accrued Interest Receivable
Other Resources

,

1,044.04

LIABILITIES

JX

for

...

Undivided Profits

5,569,603.44

35,569,603.44
700,000.00

hurdTeda^BSr increas^fn Fed"

" corporate taxes are ipCTeased

enactment

taxes
from 38% to from 47 to 52%>the utility industhrough
growth
try wiU again have to apply for
Lrate relief, i Contacts with manload factor
and
rate' increases agement appear to indicate that
where necessary
In viewing
'they are generally alert to the
Dossible further increase of 10 6% needs o£ the situation and.i£ Pub"

income

47%'

largely

a

from

levels one^

present

overlook

certain

shouW

2,884,609.90

bl

Liability, Letters of Credit, Acceptances, etc.

1,691,517.29

Furthermore

"

~

' ofsUl^greater Tmpor-

J

.

f

may

be anticipated

expansion

'r|co^nized

u

national defense

.

Deposits

Deposits

«maneces-

This

°

re««

capi?

£?wo£ry
sp SgKs
P. d,
about the con

tional

any

association, as well as for
commissions, that
increase in Federal income

H^n nf° dufidond S rnvprSfThan

individual

Jthtr

^^y t^^tolfrnR^eof
are

of

practically

industry:

exempt from

To;be sure, ^manage-

interesttoev^akelnl

iockhold-

P-tecting the rights of

57,939,230.82

U. S. Government Deposits

of
ac

power to attract "ew <^ity

E&gusSTtS&sz

electric utilities

$364,350,744.82

Deposits

Total

decisions

448,655.74

Unearned Discount

increased

income

over

23,494,654.32
445,784,629.96

was

out under the first
tax

$487,079,016.33

return

of

the last

excess

to raise net income

^s.^ce

required

was

by $1.

Under

nKr?|y. r?3uires pr°Pe*!

PP'

profits'

An increase

war.

of about $7 in rates

ruled.T

The

Jfss.er]cf 0

portfoihp aUnunistraFederal

by

$435,668,000, i

The increase in

for

the

$43 million, a gain of 5.6%,:
gain was made despite an -

increase of $408.5

erating

million in op- »
An ; excellent ^

expense. X
of purely

control

operating ex¬
distinguished from taxes
depreciation was indicated. :V

penses as

and

Fuel

costs

were

only

up

11.9%,

and salaries up 8.1%, and-,
all other items of direct operating
wages

2.3%,

up

increase

compared to.
15.2% in .output. -

of

tion

items, deprecia- *
taxes, were higher by •
and 23.4%, respectively.

and

12.2%

Taxes
an

increased

$195,115,000 to '

aggregate of almost

dollars.

billion '

a

The Power Commission's

of

report

tax increases

is

shown

in Table II.
A

breakdown of the composite

tax

bill for the

that

the

taxes
such

rise

in

Federal

other

and

income

Federal

taxes,

the energy tax, was more
than the enactment of an

as

profits tax.

The effect

on

income, when translated into
effect

balance

on

to

dilution

of

common

a

substan- /
stock

common

earnings.
•
Earnings available to the

com-,

mon

stock of class A and B

trie

utilities

elec-

$202
million for the first quarter of:
1951 as against $203 million for
the first quarter of last year.
Yet
at

the

of

end

March

this

year,

Member Federal Deposit Insurance Corporation




Other

/

State

Income

Federal
and

___.

_____

Local

$3,370,000
497,011,000
103.521,000
392,314,000

1950

rtime last] year, up . about>>
$1,684 billion, or 9.5%. To finance
this expansion in part, the indus¬
try sold around: $480 million of

-same

additional

realized

increase

proportionate
number

The

to

»of

all

in

the

shares

increase

sumed

stock,
but
earnings

common

no

in

increase

in

outstanding.
'con¬

taxation

earnings from the in¬

cremental property.
of course, did not

The utilities,
enjoy the in¬

cremental
year

new

earnings over the full
there is always a lag be¬
dilution to finance "

as

tween

equity

construction

and

the

devel¬

opment of the full earning power.
of the expanded properties. Were
it not for the

fact that the regu¬

latory authorities appear to be
fully cognizant of the serious im¬
plications of higher tax rates, the
earnings prospect of utility equi¬
ties might be dubious. Some util¬
ities are being hurt by taxes more
than others, and as indicated be¬

fore, managements differ greatly
their

holders.

interest

in

their

stock¬

It is my belief that with

due consideration of the usual in¬
vestment
criteria, a reasonable
formula for
mon

selecting utility

stocks in

place

com¬

this market would

emphasis

on

the

following

conditions:

(1) a low rate of re¬
investment capital, (2)
good outlook for growth, (3) man¬
on

agement, and

(4) a favorable at¬
mosphere of rate regulation.
Depreciation in the year ended
March

31 reached a new
high of
$445.5 million for the electric util¬

ities

in line with increase in
plant.
Applications filed for certificates
of necessity to permit
accelerated
amortization

gregate

are

and

amounts

of

also large in ag¬

will

create

internally

large

generated

revenues

gram.

Although the outlook

tive basis alone does not

31,
% Change

help
pro¬

for

ily lead to satisfactory earnings.
During the postwar expansion in
capacity, some of the most rapidly
growing properties showed the

10.8%

most
ance

Total

j

^$996,216,000 :

$807,101^000

necessar¬

38.1%
11.2%

None
$359,840,000
93,124,000
354,137,000

23.4%

;

plant had increased to $19,345. bil¬
lion fflpm $17,657 billion at the-

quantita-

Federal E. P. T

-

around

were

continued growth looms
large for>
the future, growth on a

12 Months to March

Federal

,

industry indicates

cash which will be useful to
meet
a
large construction

II

1951

>

was]

period

Commis-

Power

sion has just published

TABLE

;

increased»'■.

and this

in

compensat-

ing factors. In the first place, the
industry is growing rapidly in an
expanding economy.
Also, the
maximum
probable increase in

the
Reserve for Taxes, Interest, etc.

^

had *

c^quently

SrrealierfelatIVely greater meaSU''e

the

Total kwh sales to

consumers

gain of 10.8%.

net

turn

16,000,000.00

Dividend Declared

by^he House
affn^rCnv^

Since

52%.

last year

Surplus

much harder hit by rising

were

of

to

$14,000,000.00

Capital Stock

utilities earned last year approximately 5.8% on capitalization as
of the year~endGas utilities

5.8%

indicated tentatfvely

not

$487,079,016.33

was

Hieher'normal and surtax rates
JuiT!! KoSf

eral

Banking House, Improvements, Furniture

industry

As a consequence,

down.

less,

year

1

Cash and Due from Banks

the

for

turn

•'<

last

Time

of $2 will permit.the utility

reported That since 1947
theba& baen a ta];al,
23Lj^ectncsrate actions. Of these, 202 reting addition to the rate base in quests for increases were granted
effect of half of the budgeted new >n full>
21 were still pending,
capital requirements for
12 four were denied, and four were
months ahead. As a consequence, withdrawn
because they were
excess
profits taxes are not a predicated on an increase in fuel
properties

Demand

increase in rev-*,

of expansion by permit-

be

that

Large power sales regis- £
gain of 20.8%. Total rev- '

a

enues

tial

ization, less interest paid. Present sources

to

indicates

stock, however, reveals

day regulation also recognizes

whereas the composite rate of re4'

tered

net

barely' the present law, if normal and
"
surtax rates are increased"to 52%,

of

period

a

industries

factor

Loans Wholly or

—

..

.

two years.

The special provisions

urgency

IN

15.2%.

an

permissible earnings before excess *° carry through; about $1 To net
profits tax liability recognize the $jacomepresent situation is
right to earn an allowable re- thus much more faVorable. At a
turn after taxes of 6% on capital- very; recent
date authoritative

/
FIRST

ultimate

a

It

The uncontrolled
^

Utility Outlook

(about

sales to mining

the

months.

industry has accounted for it-

an

^Earnings for the 12 months ended May 3.1st were $3.40, a
gain over the calendar year 1950 despite higher taxes.
.Minnesota Power & Light's common stock sells on the New
Stock

the

self very well.

excess

from

>

privately-owned

.

of forest land in

acres

of

comparison with the previ¬

serious

moderate

that

annum

per

There are-about 20f million

12

expense

1.26*

Continued

York

'

v

Minnesota, finding labor conditions and labor legislation very
favorable, with few strikes as a result. New refineries are being
built to handle oil brought in from the new pipe-line from Canada
to Superior.
Tourist and vacation business is large—about $50
million a year from 700,000 visitors.
The company's rate schedules are protected as to about 80%
of fuel costs, and also carry a commodity adjustment clause and
protection against sales taxes. There is no State Commission in
Minnesota with jurisdiction Over electric and gas rates.

2.30

1948
1947

'

'

V '

enjoyed consistent and steady
compounded since 1933, and 10%

Minnesota, mostly in the company'^ area', and lumbering produces
about $150 million a year. Manufacturing activities are very well
diversified and many large firms have established branches in

$2.20

1949—

-

a

ous

Minnesota Rower & Light has

Dividends Paid

$3.33

1950_

•

inebme

and

also, of course, billions of tons of taconite or lowgrade ore. This ore is crushed to a powder, and the grains of iron
ore are separated and fused into pellets which are then shipped
to the furnaces. A great deal of development work is being done.
One pilot plant, which can produce 200,000 tons a year, is already
in operation and two others with 800,000 tons output; are being
built.
Much larger plants are being planned. It takes about 20 y
times as much electricity per ton of ore to operate a taconite
plant as a high-grade' mine, and also the mining of high-grade
ore takes more processing now
than.^formerly. >
VJ
9 f T /
It is probable that the taconite plants (sponsored by. the large
steel companies) will finance and build their own power plants, %
tinder some joint arrangement With :Minnesota:, Power,•. & Light. The company would furnish the ""know how" and perhaps obtain
some of the power (although operation of the mine and crushers
would have to be on a continuous basis).
The company would,
of course, get the benefit-of loqal residential and commercial

,

Thursday, July 12, 1951

.

class A and B electric utilities for
the year ended March 31, 1951,

are

business adjacent to the new plants.

Consolidated
Share Earnings

and

enough to
in. How¬
ever, in the past, two new tons of ore have been discovered for
every three tons used. Moreover, the amount of reserves reported
are usually held to a minimum, since they are taxable.

..

adverse
in

a

However,

financial perform¬
period of rising costs.
important elements of

'

Number 5028

.Volume 174

cost
1

March,

fuel

gross

each

dol¬
was

less than the 13.6%
increase in kwh sales. The price
of coal or its equivalent, in spite

with

of higher wages to

kept plugging away

vious year, but

has

transportation

in

since

decreased

i:

the miners and
cos is,

February,

ton in 1949 io
and government
well hold down
other important items of operat¬
1049 from $6.49 per

$6.03

last

controls

year,

may

ing expense.

sales

million in

1945 to

and

is.

now

nailed

down

—

ability to reduce unit
growth and improved

start

the

Since

of

indus¬

the electric

II

War

try has about doubled in size. The
$15 •; billion
expansion - program

completed since the end Of hostil¬
ities represents about the half¬
way mark toward the goal pro¬
jected for 1953. Average annual
usage
by residential and farm
customers has increased over 50%
since 1945 and the number of kwh
used

hour in manufac¬

man

per

turing is now more than double
the amount used during the war;

this

Accompanying

the

growth

effected

have

utilities

electric

important economics in labor.

V

all industry; the utilities
been unable to escape the

Like

have

to

t

1951,

6,

Co. at

this

$35.•• Now,

stock

nies

having

been

split 2 for 1, sells about 60.
100; shares, requiring $3,500

"Bs''

So

laid

on

the

line

16

patents

months

ago,

course

Merck pioneered

the

miracle drug for

—

arthritis.

This has

So

above showed

entire population

but

has

Merck

price

if

them

so,

wages

only

Thfs

tomorrow, and
probably be buying
drugs on the market.

T. R. Alcock Co. Is

less than

much

(and Stalin

in
T.

R.

Alcock

&

Co.,

much

as

Park

Because of the spectacular per¬
formance of shares of these com¬

Avenue, New York City, to
in

deal

and

state,

>'

county, municipal
Officers are

Alcock, President and

Treasurer, and James Williamson
Brown, Jr., Secretary. Mr. Alcock
formerly

was

associated

with

was

Bendix,

Luitweiler

past was in business in Boston.

Owens

#

to

subscribe to common shares of

company

developed

Investment Service

Chloromy¬ dividual

income

expands

KLAMATH
Owens

FALLS,

Investment

.;•$? v:
..>

*j.

,

*

been

formed with ; offices

Medical

that

gage

Dental

Building

■

IN

THE

CITY

OF

CLEVELAND

TRUSTEES

pounds. On a composite
basis, the. industry, has reduced
consumption during the last dec¬
ade from 1.340 pounds to 1.189,
.

is

which

record

impressive

an

considered, in the light of annual
output last year aggregating 339
billion kwh... >
• //... j-<
?'/,/•
Large dollar savings in expense
have arisen from increasing the
load

factor, which permits greater
a given investment,
higher system efficiency that
utilization of

lowers line losses in transmission

and

distribution^ automatic sub¬

stations that eliminate attendants,
to mention only a few improve¬
ments. Conversion from manufac¬

tured

natural

to

has

gas

large

potentiality in respect to earnings.
Not many years ago it was com¬

practice to consider the gas

mon

business

dying

a

conditions

that

extent

there

bined gas and

t

but

are

now

an

com¬

electric operations

where the tail is

the

industry,

reversed to such

are

literally wagging

President, Cleveland Construction Co,

Utility equities at this time have

the merit of providing relatively
high yields from net earnings pos¬
sessing a good degree- of stability.

These

characteristics that'

are

should appeal to trustees of large
and

growing

other

pension

institutional

New

funds

and

investors.

equity

capital raised by
gas
and electric companies ag¬
gregated around $252 million last
year
over

Robert F. Black
r

June 29,1951

President, White Motor Company

Irving C. Bolton

r,

:

Vice President, The Warner &

jv" v

Swasey Co.

Harold T. Clark, Attorney

had

and

to

compete

with

$188 million of sales for cash

to

be

a

factor

importance. The sale in
over

by

Director, Cleveland Electric Illuminating Co.

T.J.Conway

(Less Reserves)

for

some

pate

Cash

President, Thompson Products Company

on

Hand and Due from Banks

JohnS. Crider

new

to

come.

§

Ernest C.

United States Government Obligations.

/

(Including $13,200,000.00

Dempsey

as

Other Investments

Lawful Reserve)

George Durham

•

•

•

•

•

90,934,000. 00

<

•

•

.

«

•

.48
14,192,476.

Real Estate

•

•

•

*

81,475,448..09

•

«

•

.57
34,464,034.

•

First

President, Wheeling 8s Lake Erie Company

Randolph Eide

•

Mortgage Loans

•

on

•

Other Loans and Discounts.

•

.

•

•

•

•

President, The Ohio Bell Telephone Company

Mervin B. France
President

•

$ 17,924,459. 60

•

Banking House and Lot—127 Public Square

Attorney, Squire, Sanders fit Demp#ey

d

'•

'<■

;:

Dwight P. Joyce !■

1.
.00

'

;

Bank

1.
.00

Parking Lot—W. 3rd 8s Frankfort Ave..

President, The Glidden Company

Interest Accrued and Other Assets.

Frank C. Lewman
Chairman of the Board,
Richman Brothers Company

•

.96
767,738.

•«•«••••

$239,758,159.70

.

•

.

•

*

Total

«

James L. Myers
President, The Cleveland Graphite Bronze Co.

Laurence H. Norton

Drake T.

Perry, Vice President

LIABILITIES

and Secretary,

Harshaw Chemical Co.

Henry S. Sherman

$ 12,000,000. 00

Surplus

Chairman of the Board

Herman L.

Vail, Attorney,

Sayre, Vail fli Steele

John S. Wilbur
Cleveland Cliffs Iron

Reserve for

President, Dill Manufacturing Company

Expenses.

Savings Deposits

•

Other

1,827,414, 73

Contingencies

Reserve for Taxes and

Company

Arthur P. Williamson

•

•

.

,

coyn

.

.

•

.

948,159, 36
2}7,529,862. 71

•

4,866,252. 71

Deposits

Deferred Credits and Other Liabilities

•

•

•

•

Total

2,586,470. 19

$239,758,159,

major
April of

Security and Uninterrupted Dividends to

companies
have marked the peak

time

.

of

I

more

vailed in the past.




Five Generations

antici¬

orderly market for
equity money than has pre¬
a

>

Frederick C. Crawford

and..electric

appears to

J

-

.President, Fisher Brothers Co.

$138 million of common stock
gas

'.

<■

Frank M.Cobb

b.y holding companies in the proc¬
ess of breaking-up.
This will not
continue

X

'

.

RESOURCES

Director, Columbia Transportation Company

dog.

OF CONDITION

STATEMENT

barren Bicknell, Jr.

per

0.78

Founded 1849

J'h

by the larger and more efficient
generating units has been out¬
standing. In 1942, average fuel
efficiency for the industry was

of Savers

*

MEMBER

FEDERAL

DEPOSIT

INSURANCE

—

has

in the
to

in the securities business.

*V

i

Oreg.

Service'

'

$*fr:rT

v

Over and above savings in labor,
the reduction in fuel consumption

as

&

Co., Byrne and Phelps and in the

f

at 1.30 pounds of coal
kwh, whereas new units have
cut fuel consumption to as little

with

Schwamm & Co. and prior thereto

,.

reported

270

'

telephone

for

at

bonds.

revenue

Thomas R.

offices

with

.

•

compares

64%

as

companies.

has

formed

over

r

most

for

Inc.,

been

-

with
about 50% for railroad labor and
end

industries

M

rent

reported

salaries astaking
of
gross
revenue.

and
19.4 %

is

fer¬

you'll

the

1951

ended March,
Commission

year

show

Another penicillin

impact of higher wage rates, but
of output are
control. For

Power

certain

sheets—the

balance

of

remember

have

labor costs per unit
under much better
the

bigger,^

some

launched

be

some

ment. Just because a drug stock
yields today only 4% on its cur¬

steadily

down from

and

over,

of

scientists.

top

dividends,
market
stockholder
content¬

price i! and

their

may

in

reflected

most

2a

tile and generative brains of their

sales increase in the past
of over 80%,. an in¬

handsomely

looking

now

firms

powerful assets that don't
on

an

is
doing nothing to abate their
growth)! Then Searle also brought
panies in the last decade, and the
$150 a
gram
in the summer of along "dramamine," a big boon to fact that
many of them sell right
1949 to around $20 wholesale right the seasick.
"
'
now
at or near all-time highs, it
Since /1945
now; and even while this article
Searle.; sales have may occur to you that (if
you're
was
being written, Syntex, Inc., gohe. from 55,956,000: to $16,333,- not
already aboard) you're too
a Mexican pharmaceutical (and a
000 for 1950. While small in re¬
late.
While I share your relucvery savvy outfit) announced a lation to the leaders like Parke lance
to act as a sort .of market
method
of
and
Merck > (above
producing cortisone Davis
the Daniel Boone, pioneering a stock
from Mexican yams.
How much $100,000,000 annual sales level) into new
high territory with your
competition this will give Merck Searle makes up in velocity of
purchase order, it does seem to
remains to be seen, but Merck has growth.
Right nowr its current me that, for the
long range, al¬
more than stayed even with
the percentage increase in sales prob¬ most
any
we've
talked
about
field in the past.
And investors ably leads the field.
could
continue
present forward
who've strung along with Merck
Others in this field, would be .motion. Health is a primary goal
through the years will never feel covered if space
allowed.. They of man, and anything that caters
at ease selling it short!
//';./
would include Parke Davis with to it will always have a terrific
In February, 1950 the. investing common shares about 60, capable market, not
only in America but
public was given an opportunity of $2.75 dividends in 1931. ' This throughout the world. And as in¬

produce

brought the

that

bigger and

grows

start

these

price, you should not turn
away.
There -may be an extra
"banthine/- remarkably effective dividend, a
spiit-up, or a valuable
in
the
treatment
of
ulcers,
a
subscription right just around the
malady afflicting at least 1% of corner. That's the way it's been.

our

been costly to

market

greater : net,

on

.

estimated

an

years

crease

sufferers

to

to

zero

mentioned

average

five

,

cortisone

World

July

It

have

at the

reported

boon

a

reasonable degree

technology.

annual rate

an

D. Searle &

Vitamin equals $12,000 today. Not bad, eh?
from !We.ll, how come?
The old story,
pernicious anemia, and a growth research — and
fabulous
new
stimulant which may importantly products/
1
/
Searle
speed the process from piglet to
brought
out
in
1950

B^

price stability, the utility in¬
dustry can bring'into play its

of

with

G.

$55Vz

of about $100 million for 1951.

I" And of

costs

from

//:<■_',''. J/ ham, from calf to steak.

"

Given only a

recognized

zooming

from

sale of $50 million in 1951.

Squibb, Sharp & Dohme, and
Smith,
Kline &
French
about
complete the list of independents.
Taken as a group, all the compa¬

Drags On the Market

increase of 11.9% over the pre¬

increases

cetin

Continued from page 3

There

revenue.

(171)

accounted

expense
cents of

17.5

lar of electric
an

The Commercial and Financial Chronicle

in

ended

months

12

the

for about

.

.

to be leveling off.

appear

For

.

CORPORATION

70

en¬

The Commercial and Financial Chronicle
24

.

.

.

Thursday, July 12, 1951

(172)

of

Profits

S.

U.

manufacturing

the first quarter

of 1951, according
quarterly estimates by the

the

estimated

Securities and Exchange Commission and the Federal Trade Comnnssion.

Net

in

decline

in

profits

be a reflection of the more
accounting adjustments

may

the

the quarter and re¬

at the end of

billion to
The net
property, plant and equipment ac¬
count increased $1.0 billion in the
first quarter and was carried at
$44.8 billion at the end of the
ceivables increased $1.4
a

Stockholders' equity in
quarter increased $2.1
amounted to $88.0 bil¬

quarter.
the

made in the fourth quarter reports

billion and

by these small companies.
Of the 22 different manufactur-

lion

a

and expenses increased somewhat

in£ industries classified inanv rethe in,
fi
showed

ernment

securities to current lia¬

bilities,

a

face

the

occurred in

quarter of 1951
the

of

rise

of manufacturing

of

sales

net

corporations to

nnri'

than sales and,

more

as

a

result,

first

end of the quarter.
plus U. S. gov¬

the

at

of corporate,

measure

liquidity, continued to decline in
net
operating
profit
declined crease in
in
first
quarter of 1951 compared the first quarter of 1951. At the
about 1%.
The relatively larger
with the fourth quarter of 1950, end of the quarter this liquidity
decline in profits after taxes re¬
and the amounts involved were ratio amounted to 78% as com¬
flected lower non-operating in¬
small.
Industries
showing
in¬ pared with 84% at the end of 1950
come in the first quarter of 1951.
creases
were
printing and pub- and 107% in the first two quarters
According to the report, after Rshing, motor vehicles and parts, of 1950.
taxes the rate of return on stockchemicals, fabricated metals, and
holders equity in the first quarter non-electrical machinery,
of

1951

is estimated

basis

annual

an

16.4%

at

14.8%

compared

on

Related

with

taxes in

the

preceding quarter
the corresponding
In making comparisons with the first quarter of
1950, it should be pointed out,
and

in

12.0%

Uie

pioilts atter taxes

to

after

profits

sales,

the first quarter of 1951

ranged from 10.2 cents per dollar

in

for

quarter of 1950.

the

petroleum

group
food group.

for the

cents

to 2.6
In the

Halsey, Stuart Offers
Iowa Pub. Serv. Bonds
is

Inc.

Co.

&

Stuart

Halsey,

preceding quarter the range of offering $5,000,000 Iowa Public
profits related to sales was 13.0% Service Co. first mortgage bonds,
however, that the early part of to 3.0% with the same industries 3%% series due 1981 at 100.37%
at either end of the scale.
and accrued interest. Award of
last year was a period of some¬
Total assets at the end of March the bonds was made at competitive
what depressed business activity,
1951, according to the report, were sale on July 9 on a bid of 99.55%.
with the recovery beginning in estimated at
$131.2 billion. Cur¬
Net proceeds from the sale of
the second quarter and increasing rent assets amounted to $77.8 bil- the new bonds, together with cash

INDUSTRY

GROUPS,

provide a portion of the
funds required for the construction
used

1st QUARTER 1951

(Amounts in millions of dollars)
1st Q.

Perct.

1950

1951

Change

—

$461

81

68

—16

368

376

66

64

152

154

69

64

Paper and allied products
Printing and publishing

361
65

Chemicals

790

836

Petroleum and coal

895

799

Rubber

176

167

$522

Textile

;

mill

products

Apparel and finished textiles.
Lumber and wood products__
Furniture and

fixtures,_

_

_

Leather

__

_

$220

$251

—

36

32

184

181

34

33

3

—12
—^11
—

—

2

3
2

1

81

79

36

30

411

+ 14

186

172

77

+ 18

32

36

6

343

352

+

—11

611

496

—19

5

79

73

+
—

+
—

42
261

313

281

663

—19

652

28

20

6

113

165

139

—

—17
—

8

+ 12

—

3
8

—29

113

—10

52

—

—

257

2

Fabricated metal

366

377

+ 3

619

666

+

8

529

418

—21

Transp. equip, (excl. autos)__

132

39

Motor vehicles and parts

889

131

174

288

Electrical machinery

253

171

Mach.

—

2

+

2

+

1

215

164

—24

—33

61

42

—31

716

—19

255

265

103

—21

59

44

108

112

+ 4

55

53

7,626

7,194

6

3,541

3,261

!

Instruments, etc
_

All manufacturing

—

acquisition of permanent im¬
provements, extensions and addi¬
tions to the company's property
and to pay off temporary, bank
loans
incurred since March 31,»$

*

aggregate principal
$1,750,000. Present

the

in

1951

of

amount

expenditure by
approximately
during 1951 for the

plans call for the
the

of

company

$9,000,000

construction

4-

4

—25
—

—

4

8

of

acquisition

or

property additions. As additional
funds are required, they may be

cash

from

provided

resources,
borrowings and/or from the

from

additional

proceeds of the sale of
—16

291

(excl. elec. & transp.)_

Miscellaneous

Change

7

277

_

Stone, clay and glass
Primary non-ferrous metal
Primary iron and steel_

Perct.

1951

1950

—12

Tobacco

1st Q.

4th Q.

4th Q.

Industry Group

Food

to

or

—Profits After Taxes—

—Profits Before Taxes—

——

operations, will be

from

derived

PROF1TS OF MANUFACTURING CORPORATIONS BY

securities.

redemption prices range
from 103.37% to par, while special
General

redemptions are scaled from
to par,
v
Iowa Public Service Co. is a

public utility engaged in the pro¬
duction, transmission, distribution
and
sale of
electricity, serving
about 215 communities in portions
central

western and north

of the

Waterloo

the

on

City

on

also

serves

east

with

electricity

Statement

as

United

State

Due

States

and

Other

1951

and

Banking
Income

Other

and

$

84,387,541.72
84,541,152.37

.

Bonds

8,474,992.97

Securities

9,198,784.77

;

Discounts

Premises
Accrued

84,645,873.30
3,550,011.79

.Occupied

Receivable

and

Prepaid

•

$275,630,885.63

__

________________

_

Undivided

10,000,000.00

Profits

Capital Funds
Reserve for Dividends,
Interest, Taxes, etc.

on

_

$

20,343,195.12

He

New York Stock

1,930,317.19

Exchange

Weekly Firm Changes
238,082.741.50

V:

U. S. Government

The New York Stock Exchange

15,259,532.56

"""Commercial, Bank and Savings
■

Other Liab Hities

has announced the following firm

r' ■'
__

TOTAL

15,099.26

changes:
Jan

$275,630,885.63

-

,<

\

Goldberger

retired

from

partnership in Jacquin, Stanley &
*In addition to this item,

as

shown,

toe

Have unused loan commitments out~

standing in the amount of $4,369,187.27.

:

i




Co.

■■■*),

*_-Tliis includes $5,208,670.61 of Trust Money on deposit in the Banking
Department which, under the provisions of the Banking Law, Section 710-165
of the State of Ohio, is a preferred claim against the assets of the bank.

of 12.9% below last year's 43,577 for
period, but a gain of 3.6% above the 36,623 recorded in
parable 1949 period.

senting

drop

a

Steel

July 9.

Interest of the late Franklin J.

Grieder, who died July 2, in Salo¬
mon

as

Bros.

&

of July 31.

i

Hutzler

.

the same
the com¬
:

Operations Trend Upward in Current Week J

'

,

By September civilian steel consumers will either be virtually. %
out of the steel supply pictures—or they will be included under
the controlled materials plan, states "The Iron Age," national
metalworking magazine the current week.

The National Production

Authority has made two sudden moves that will greatly increase
the amount of steel marked for distribution under CMP.
At the

time, "free" steel supplies will be shaved to a mere whisker.
first move, the magazine discloses, was to change the

same

The

period to which steel-set-aside percentages are applied from
months of last year to planned September produc-;
to April and May of this year to whichever is larger.Either new base is a period of much higher production.
The second move, it adds, was to greatly increase the per¬
base

the first eight

tion

or

which steel firms must
percentages
of the higher-output base period will become effective with Sep¬
tember production. Lead time for placing orders will be 45 days..
Some of the increases in steel set asides are staggering. For
example, "The Iron Age" notes, ingots were raised from 15 to
95%. Blooms, billets and slabs were raised from 52 10 95%; tube
rounds, from 60 to 95%; nails and staples, from 25 to 90%.
Set asides for more than half of all carbon steel products now
range from 90 to 100%.
Amcng the items calling for 100% set
aside are: Tube rounds, oil country goods, line pipe, and rails
and track supplies.
•
I
If the National Production Authority next decides to change
the present open-end CMP to a closed-end plan there will be few
objectors. The reason is that those industries still struggling to
operate outside of CMP could hardly fare worse if they are in¬
cluded under the plan. Steel company resistance will largely fade
away when they try to divide 5 or 10% of their production equi¬
centage set-asides on carbon steel

produc

s

government programs. The higher

make available for

,

tably among their customers.
Actually, many believe a closed-end CMP is logically NPA's
next move.
Consumer durable industries such as autos and appliances have already been ordered to file fourth quarter require¬
ments. This would be the first move if they are to be included.

with peace moves in Korea, con¬
dead but it has surely faded
away.
Regardless of what happens in Korea most steel products
will be in extremely short supply throughout this year ana well 4
Talk

linking

cludes "The

easier steel

Iron Age," may not be

into 1952.
The American

Steel Institute announced

Iron and

this week

of steel companies having 93% of the steelmaking capacity for the entire industry will be 101.5% of capacity
for the week beginning July 9, 1951, based on the industry's in¬
creased capacity of Jan. 1, or an increase of 0.7 point from a

that the operating rate

week

ago.

r

current

The

rate is equivalent to 2,029,000

week's operating

entire industry, com¬
pared to 100.8%, or 2,015,000 tons a week ago, and 103.2%, or
2,063,000 tons a month ago. A year ago it stood at 94.9 of the
old capacity and amounted to 1,830,000 tons.
*

tons

steel

of

ingots

and

castings for the

Electric Output Drops
The

amount

of

electrical

;

;

Sharply in Holiday Week
distributed by the electric

energy

light and power industry for the week ended July 7, 1951, was
estimated at 6,077,077,000 kwh., according to the Edison Electric
Institute.
The current total was

820,723,000 kwh. below that of the pre¬

or-13.0% above the total output for
kwh." in excess of
output reported for the corresponding period two years ago.

vious week, 697,153,000 kwh.,

8, 1950, and 1,094,904.000

the week ended July
the

Carloadiqgs Decline Mildly in Latest Period

will

cease

•

ended June 30, 1951;
totaled 821,615 cars, according to the Association of American
Railroads, representing a decrease of 11,327 cars, or 1.4% below
Loadings of revenue freight for the week

the

preceding week.

represented an increase of 38,095 cars, or
week in 1950, jand an increase of
177,433 cars, or 27.5% above the comparable period of 1949, when
loadings were reduced by the coal miners' annual vacation period.
The

week's

total

above the corresponding

4.9%

Auto Output

f

Drops to Lowest Weekly Total

Since December, 1949

totaled

For

production in the United States and

Automotive Reports,"
previous week's total of
137,731 units in the like week of 1950.4

week, according to "Ward's

102,127 units, compared with the

156,105 (revised) units, ana

Friday,

illness.

50 years of age.

was

DEPOSITS:

•

away

short

a

3,343,195.12-

Total

•

passed

after

July 6,

7,000,000.00

partner in
Phila¬

Miller,

;

"

aggregate number of new business corporations for the
first five months of the year through May, came to 37,951, repreThe

Canada the past

E. W, & R. C. Miller & Co.,

delphia,

LIABILITIES

$

Conover

the corresponding

corporate activity from

Combined motor vehicle

R. Conover Miller

169,071.25

Industry

All but seven of the forty-eight states

1950 month.

.

R.

Capital Stock
Surplus

Dakota-

electricity

state line to \
municipality of South Sioux
City for distribution by * it in
Nebraska. The company also pro¬
vides natural gas, manufactured
gas
propane-air gas and water
services in its community.

663,457.46

Expense

Resources

TOTAL

South

the

;

Bonds

the

Da¬

at the Iowa -Nebraska

of June 30,

Banks

Municipal

Bonds

"■Loans

from

near

South

in

Iowa state line and sells

O H I

RESOURCES

Cash and

communities

kota
*

>

Sioux

and

The company
six

west.

the

small

year ago.

declines in

reported

100.37%

part of the state of Iowa, including

C I N CI N Ki AT 1

tered in May a

The ratio of cash

;n nrofits after taxes in the

creaqe

k

,

The State oi Trade and

$18.4 billion.

of

level

extensive

first

5

working capital of U. S.

profits after taxes in the
nual rate of profit for the smallest
first quarter amounted to $3.3 bil¬
size group of corporations, those
lion, an 8% decline from fourth
with
assets under
$250,000, in¬
quarter 1950 profits. These profits,
creased from 8.0% in the fourth
however, were bettered only in
the last two quarters of 1950 and quarter of last year to 14.4% in
the first quarter of this year. To
were 36% above the first quarter
a large extent this sharp increase
of 1950.
"
The

Continued from page

manufac¬
in tempo after the initiation of turing corporations at the end of
the first quarter 1951, the excess
hostilities in Korea,
Only
the two
smallest size of current assets over current lia¬
groups covering corporations with bilities, amounted to $46.4 billion,
less than $1,000,000 in assets or about $1.4 billion more than at
showed increases in the rate of the end of 1950.
return
on
stockholders' equity
The book value of inventories
from the fourth quarter of 1950 to in the first quarter increased $1.9
the first quarter of 1951. The an¬ billion to a level of $33.1 billion

corporations were down although
sales reached an all time peak in
to

current liabilities were
at $31.4
billion.
Net

and

lion

Manufacturers' Profits Lower in First Quarter

the

United

States

alone,

total output was 95,825

units,

:k

since December, 1949, against last week's
revised total of 149,886 units, and in the like week of last year +
the lowest weekly" total

128,056. Canadian output in the week totaled 6,302 units compared
6,219 units a week ago and 9,675 units in the corresponding

with

*
i
75,106 cars
and 20,719 trucks built in the United States and a total of 4,550
cars
and 1,752 trucks built in Canada.
In the previous week,
Canadian output totaled 4,337 cars and 1,382 trucks against 7,072

1950 week.

•

Total output for

cars

and 2,603 trucks in the like 1950

Business Failures Slump
Commercial

and

-

*

the current week was made up of

industrial

week.

in Holiday Week

failures

declined

holiday-shortened week ended July 5 from

to

.

^

129 in the

188 in the preceding

week, Dun & Bradstreet, Inc states. While casualties were slightly
below the 1950 and 1949 totals of 138 and 153 in the comparable

,,

Volume 174

Number 5028

those

of

Weeks
prewar

.

.

they

years,

The Commercial and Financial

Chronicle

with

in

liabilities

of

$5,000

cipally for the week's decline, falling to 93 from 150 in the pre¬
Small casualties under $5,000

and wholesaling.

a

ok

a'

Department store sales

the Federal Reserve Board's
"

.

A further mild drop in the Dun & Bradstreet

wholesale food
price index brought the July 3 figure to a new six-month low of
$7.
This represented a decline of 4.2% from the 1951 high of
$7.31 on Feb. 20, but it remained 13.1% above the comparative
of

index

1950

$6.19.

The index represents

the

total of the price per pound of
chief function is to show the gen¬

year ago.

;

Registers Sharp

index for the week

Retail trade volume in New York last week advanced sharply
that of a year ago, with the increase placed by trade ob¬
at close to 20 %.

(revised)

'

-

general corporate

purposes,

(Special to The Financial Chronicle)

SAN

1951,

Richard

and for

FRANCISCO,

Calif.

F.

now

Kenney

Consolidated

11% from the like period of

Russ

;

is

Investments,

Building.

commodity price index, compiled by Dun

&

Bradstreet, Inc., held in a narrow range during most of the
week but dropped sharply toward the close, largely reflecting the
downward adjustment in the government selling price for rubber.
The index

finished at 311.70 on July

3, comparing with 312.90 a

week earlier and with 272.01 on the like date a year ago;

Leading grain markets continued to be unsettled, influenced

by the prospect of

early cessation of hostilities in Korea.

an

Prices recovered from the sharp declines registered early in

.

the period and

for the most part, closed above those of a week
was weak., The more distant futures struck
new lows for the season but strengthened in late trading, influ¬
enced by the announcement of a higher loan rate for the 1951
wheat crop and by adverse harvesting conditions in the Southwest
and the absence of usually heavy market receipts at this time.

Cash wheat

ago.

OF DETROIT

NATIONAL BANK

With current

prices below the prospective loan basis, it is expected
that growers will put much 1951 wheat into the loan and thus

further curtail the amount for market.
Corn developed

COMPLETE BANKING AND TRUST SERVICE

firmer tone and prices turned upward in
closing sessions. Trade volume in grain futures on the Chicago
Board of Trade increased sharply last week to a daily average
of

a

STATEMENT OF CONDITION,

JUNE 30,1951

44,000,000 bushels, from 30,200,000 the week before.
Domestic flour bookings failed to show

sion

as

expan¬

bakers and jobbers showed little buying interest pending

the

start of

the

seasonal

any

finished

new

crop

Export flour business

movement.

week ago, aided by the Bra¬
zilian Government's efforts to support coffee prices. Cocoa values
and

moved

slightly higher than

a

the result of liquidation and,gelling in-,*,
duced by reports of European offerings of West African cocoa to
sharply lower

early

an

on

Hand and Due from Other Banks.

Other Securities

world

and

peace.

Lard and

raw

markets

sugar

recorded

t

>

.

*

706,372,358.61

•

•

•

119,611,647.44 '

:fj.

Real Estate

272,850,646.59

Mortgages

vegetable oils developed a firmer price tone toward
Hogs advanced moderately for the week.

.

.

.

Customers'

Liability

.

.

.

63,998,758,06

.

.

.

Accrued Income and Other Resources
Branch Buildings and

steady and lambs finished slightly lower.

were

410,738,406.46

.

Loans:

the close of the week.

Steers

'

$

»

.

United States Government Securities

Loans and Discounts

domestic

the

substantial declines last week largely influenced by the prospects
for

Cash

as

this market.
Both

RESOURCES

re¬

The coffee market rallied following a weak start

mained small.

336,849,404.65

.

6,262,684.55

2,467,019.85

Leasehold Improvements

on

Letters of Credit.

Acceptances and

.

,

»

.

.

.

if

«

.

7,752,287.65

$1,590,053,809.21

*

Prices in spot cotton markets continued unchanged at or close
ceiling levels last week. Futures were irregular and showed
moderate losses for the period despite an upward spurt in late
dealings. Early weakness stemmed from selling induced by peace
proposals and uncertainties surrounding the international situa¬
tion. Other factors in the easiness included continuing favorable
weather and crop advices, slowness in the spot cofc.on and gray
goods markets, and indications that the acreage planted to the new
crop will exceed the government's goal of 28,536,000 acres.
Re¬
ported sales in the ten spot markets declined to 39,600 bales last
week, from 42,700 the week before and 75,200 a year ago.

Deposits:

i

Dividend Payable August

to

if".

Trade Volume Declines
Nation-wide

consumer

period

day-shortened

r

in Holiday-Shortened Week

spending dipped slightly in the holi¬

ended

Wednesday of?£last week with
thp unusually high
the corresponding week a year ago, states Dun & Brad¬
on

over-all retail dollar volume moderately below
level for

street, Inc., in its latest summary of retail trade^.

LIABILITIES

f

Commercial, Bank and Savings

.

i

i

•

$1,297,293,971.92

United States Government

.

•

♦

»

172,818,791.12

....•»«

35,951,132.37

Other Public
Accrued

Deposits

.

Expenses and Other Liabilities

1,1951

.

Acceptances and Letters of Credit

.

»

.
.

7,547,126.82
750,000.00

if

.

7,752,287.65

»

»

•

•

{

.»

15,000,000.00

...

•

•

45,000,000.00

.

k

Common Stock
.

.

($10.00 Par Value)
.

.

.

•

.

7,940,499.33

Undivided Profits.

fc^achwear,

were

increasingly popular. The demand for dresses dipped, except for
some moderately-priced fashions, .There was an increase in the

67,940,499.33
$1,590,053,809.21

Uncertainty, arising from peace prospects irf the Far East was
responsible for some of the reluctance on the pari of shoppers.
While there was a general decline in retail fapparel buying

■i

last week, some lines, notably sports clothing and

$1,506,063,895.41

.

Capital Funds:
Surplus

United States Government Securities
statement are

pledged to

secure

carried dt $206,209,893.45 in pie foregoing

public deposits, including deposits of $9,190,862.92

of the Treasurer-State of Michigan, and for other purposes required by law.

purchase of haberdashery and other men's furnishings in scattered
vicinities with men's wear in general in somewhat reduced de¬
mand, however.
'
if
There was no appreciable change in the consumer demand for
edibles in the week with dollar volume

slightly, atjove that for a
There was sustained hesitancy among ^housewives in
regard to meat buying; a generally increased interest for fresh

HENRY E. BODMAN

produce raised the unit volume of many items of vegetables and

ROBERT J. BOWMAN

[ BEN R. MARSH

DONALD F. VALLEY

PRENTISS M. BROWN

)fWALTER S. McLUCAS

JAMES B. WEBBER, JR.

fruit.

>

The

minor

loss

of

-

|

*

shopping day; was reflected last week in a
dip in the selling of house-furnishings. >

when
country.

"scare-buying"

were

somewhat below those of

prevailed

much

throughout

Among the lines more abundantly bought were
demand in scattered

was

areas.

percentages:

summer

The

BEN E. YOUNG

IR. PERRY SHORTS

fur¬

:

,

,

32 OFFICES IN

:

estimated to be from 2% to 6% below the level
a year ago

MAIN OFFICE—WOODWARD AT CADILLAC

SQUARE—DETROIT 32, MICHIGAN

■

England, East and Pacific Coast —2 to —6; South and
to —7; Midwest and Northwest —1 to —5.

start

DETROIT

by these

Southwest —3
1

JOHN B. FORD, JR.

C. E. WILSON

period ended.on Wednesday

Regional estimates varied from

year ago.

New

the

R. R. WILLIAMS

NATE S. SHAPERO

Floor-coverings were in adequate

Total retail dollar volume in the

a

year

JR.

.

niture arid small housewares.

of last week

a

of

W. DEAN ROBINSON

CHARLES T. FISHER
CHARLES T. FISHER,

GEORGE A. STAPLES

B. E. HUTCHINSON

one

Aggregate dollar sales
ago,

of

BOARD OF DIRECTORS

ago.

year

of

the

summer




vacation

period and the expected

>

With Consolidated Inv.

In the pre¬

For the four weeks ended June 30,

'

of

The net proceeds are to be used

registered above

was

increase of 13% was recorded above that of a year ago,

last year.

members

weekly period of June 30,

1951, advanced 8% from the like period of last year.
increase of 14%

Co.,

Association

for the development of manganese
ore
and other deposits, and for

According to the Federal Reserve Board's index, department

an

National

Dealers, are offering
"as a speculation" 1,200,000 shares
of common stock (par 10 cents)
of Magma King Manganese Mining
Co. (an Arizona corporation) at
25 cents per share.

ended June 30,

over

ceding week

the

Securities

servers,

the year to date, volume advanced

Decline at Close of Week

of

1951, decreased 2% from the like period of last year. This com¬
an increase of 6% in the previous week, and an in¬
crease of 2% for the four weeks ended June 30, 1951.
For the
year to date department store sales registered an advance of 9%.

an

The daily wholesale

Offered at 25 Cents
Weber-Millican

pared with

the similar wek of 1950.

prices at the wholesale level.

Wholesale Commodity Price Index

Manganese Mining Stk.

country-wide basis, as taken from

store sales in New York City for the

25

slight loss of interest

a

sum

31 foods in general use and its

eral trend of food

was

account for

during the past week. The total dollar
virtually unchanged from the level for the

noticeably above the level of

Food Price Index Hits New Six-Month Low
•

ordering

comparable week in 1950. While the number of buyers attending
various wholesale centers dipped considerably last week, it was

ceding week and 115 a year ago.
dipped mildly during the week.

All industry and trade groups reported a decrease in mor¬
tality during the holiday week. The number of failures" exceeded
last year's level in retail trade, construction, and service, while
a. marked decrease from 1950 prevailed in both manufacturing

wholesale

volume of orders

accounted prin¬

more

or

(173)

cease-fire in Korea helped to

down sharply, 38%, from the

were

level of 208 in 1939.

Failures

•

.

Member Federal Deposit Insurance

Corporation

with
Inc.,

The Commercial arid Financial Chronicle

.

.

.

Thursday, July 12, 1951

(174)

26

Korea:
*

With Louis A. Love
(Special to The Financial

Chronicle)

mentioned

Calif.—John J.
is now connected with
Love Co., 700 Hermosa

MENLO PARK,
Eshleman
Louis A.

looked

will
30

THE

Calif.

PASADENA,

—

William

Corporation, 231

of the Pasadena

East Colorado Street.

NMFI0NAL
STOCRSI-R!6S'

Prospectus
your

upon

NATIONAL

or

from
from
&

SECURITIES

RESEARCH
t20

request

investment dealer,

CORPORATION

BROADWAY, NEW YORK 5, N. Y.

£7/e

,

Seorge

It

legislation

State

eligible when the list comes under
review periodically.

then, National
in Korea this

truce

a

that

appears
about within

now

come

this

the

next

days.

in

effect

v

prior

than

thereto.
Corporate

Earnings:

The earn¬

ings of all U. S. corporations are
expected to be about $23 billion
this year as compared
lion last year.

to $22.8 bil¬

Corporate Dividends: Dividends
Spending:
There from all U. S.
corporations in the
practically no reduction aggregate are expected to amount
hangs in balance this week at the
Employees of the Socony-Vac-,
Pennsylvania
State
capitol
of uum company and certain of its in government spending during to $10 billion this year as com¬
Harrisburg after months of con¬ affiliated companies are eligible the remaining months of this year pared with $9.5 billion last year.
Conclusion—The
cessation
of
troversy
and strongly-contested to participate in the Plan, which as a result of an early Korean
legislative actions. Both the Ber- permits an employee to allot from Armistice. (The defense program hostilities in Korea accompanied
is
aimed
at
a
potential Soviet by continued Federal spending for
ger and Snowden "Prudent Man"
1% to 5% of his base pay, and his
war.) However, contemplated ex¬
bills are scheduled for their sec¬
defence and foreign aid would
employer-corporation contributes,
ond
readings in the Senate of out of accumulated earnings and penditures for the defense pro¬ have a generally favorable effect
gram may be spread over a three on our economy. A lesser increase
Pennsylvania on Monday, July 16, profits,
an
additional
amount
year period beginning with
1952 in corporate and personal income
and, unless the calendar is held equal to 50% of his allotment.
rather than completed in the two
taxes
than
might
be
expected
over, for the third and final read¬
The
shares
of
any
qualified
year period as previously contem¬
ing Tuesday, July 17, after which fund
prior
to
a
Korean
Armistice
may be selected b.y an em¬
plated.
would
be
helpful
to
corporate
they will be presented for the
ployee, but the shares of only
Governor's signature.
earnings. With corporations pay¬
one
such company may be pur¬
Economic Indices: National Se¬
ing out about 45% of net earn¬
Both "Prudent Man" bills are chased at a time.
curities sees no reason for revis¬
ings after taxes, dividends of all
identical except that the Snowden
Socony-V'acuum, although re¬ ing previous conclusions in re¬
U. S. corporations this year should
bill
specifically
authorizes the fusing to advise its employees gard to
Industrial
Production;
reach an all-time record high of
securities of investment compa¬
concerning the merits of various Gross Product, National Income
approximately $10 billion. Military
nies as legal for investment by
Employ¬
funds, pointed out that in tjhe and Personal Income;
defense
orders
are
accelerating
trust funds.
Esti¬
purchase of investment company ment and Cost of Living.
and the remaining months of this
of
Farm
The efforts of elements of the shares, employees are not buying mates
Income, Retail
year will see a substantial stepmutual funds industry in Penn¬ just one stock, "but an interest in Trade, and Plant and Equipment
up in such expenditures.
Varia¬
sylvania, led by Joseph E. Welch, dozens of securities. One typical Outlays also remain unchanged.
tions as to industries and individ¬
Executive Vice-President and investment company has common A relaxation of credit controls on
ual issues will continue but, over¬
Treasurer
of
Wellington
Fund, stocks in 100 companies repre¬ instalment purchases seems prob¬
able this summer.
Construction all, the year 1951 will be a favor¬
to press for adoption of the Snow¬
senting 19 industries."
able year for the owners of Amer¬
likely will be increased during
den Bill or to include in the Ber"The risk thus is spread over
ican corporations.
ger Bill
specific permission for many companies and industries. the latter part of the year and, on
National
Securities
and
Rean
annual
trustees to invest in mutual fund You are not
basis, should exceed
putting all your eggs
the
total
dollar volume
of
Continued on page 28
all
shares has created one of the bit¬ in one
basket," the company told
U. S. construction in 1950 which
terest fights in recent State finan¬ its
employees.
amounted to $27.7 billion.
cial legislative history.
"Professional investment man¬

interests

funds'

mutual

Government

will

Chronicle)

been added to the staff

has

Rose

to

OF

FATE

vital

Adds

Pasadena Corp.

first mentioned;, mistice

was

since

for

year.

By ROBERT R. RICH

Way.

(Special to The Financial

As

In Staff Minutes of April 5, 1951
and
as
has
been
continuously

be

„

PUTNAM

|

\

"

J

«

,

Pennsylvania have been strongly
opposed
to
the mutual funds'
movement and the lines of con¬

•cf SJjodtvn

|

•;

troversy were drawn early be¬
tween those men
who, in prin¬

'

the validity of

in

believe

ciple,

Lyyyy*wwwww***

HHMiinuiiiiHiMNiimMnniiiniuiiii
tares ua«BBflBBaBBBBB*aaBaaBBBaBBMBBaa«BBiBBaBBBBB

JtMWKHBMaiMHNafaaMHBBBNHIBMiaBBaiMtRaM

■WMRMHUBBaiBMBaBVBBiBBWM*—'*«■■■■■■■■■■■«■■■■■■
■BIBBBBBBBB

K^iaMMfi
MfSSM

d

j

IlKM I
■ki
IWHU.JM

WELLINGTON

I BBHBB

firmly

am

'

murnrnj

to buy investment
stock under the plan,
read carefully the prospectuses of
the investment companies that in¬

investment."

In

a

decide

you

company

letter to

Welch, Secretary Campbell
stated, "I attempted to

Mr.

■■■Ul

:aaaaai

op¬

to

trust

further

terest you.

You

may

find it help¬

some good advice at our ful also to seek advice at your
conference and I am still decided-' bank or broker as to which of the

give

you

of the opinion that you are
making a grave mistake in not
withdrawing this amendment at
this time. I believe that up to the
ly

prospectus from
your

investment dealer
or

PHILADELPHIA

2, PA.

t

time there has been no
particular opposition from banks
generally to selling your shares to
the public.
However, I have at¬
tempted to find out the sentiment
of
the
bankers .throughout
the
Commonwealth with regard to this
amendment
[to the Berger Bill,
specifically permitting trustees to
invest
in
mutual
funds]
and I
present

learned that the sentiment is

eystone

cidedly against making

eligible
you

Custodian

you

practical for the
sue

believe

that

present

A

Meeting

cluded that there would be

if

in

duction

during

same

government

no

The

INVESTMENT FUNDS

Snowden

Federal

the remaining months of
as a result of an early

Bill

few weeks

ago,

are

Investing their capital
MUTUAL
been

FUND

placed

have

shares

the

on

eligible

Any

'

the recently-announced Socony-Vacuum
Oil
Company
em¬

PREFERRED STOCKS
(Series K.1-K2)

the

COMMON STOCKS
(Series S1-S2-S3-S4)

may

be obtained from

Tke JCeystone Company
of Boston
.

;

50

Congress Street

Boston 9,

Massachusetts




list

toward

stock

of

the

which

are

also

savings

the

oil

plans to contribute 50%

the

member

ciation

of

of

the

of what

low

$25,000,000 will

months

cease

to

be

this

withholding

dividends

and

less likely

and

year,

1, next
of

tax

interest

with

a

CALVIN BULLOCK

pos¬

Established 1894

year.

20%

on

New

One Wall Street

and

con¬

Korean Ar¬

American Business

Shares, Inc.
Prospectus upon request

Lord, Abbett & Co.
New York

—

Chicago

—

Los

Atlanta

Angeles

surtax

10% effective not

is

less

Armistice

and

likely
in

interest

with

effect

of

this

year

will

a

than

see

A Diversified Investment

Prospectus

may

Company

be obtained from your local
or The Parker Corporation,

investment dealer
200

Berkeley St., Boston 16, Mass.

a

.

step-up in such ex¬
penditures.
The
following
represents
the
composite judgment of National's
Staff:

York

payments

substantial

Asso¬

be¬

is

prior thereto. <
Corporate
earnings
are
ex¬
pected to reach an all-time high
of $23 billion this year and divi¬
dends establish a record high of
$10 billion.
Military defense orders are ac¬
celerating
and
the
remaining

Dealers

Funds whose total assets fall

1,

on

dividends

on

Korean

company

National

10%, effective not earlier

Oct.

sibly not until Jan.
The

or

likely

payments

Investment

Securities

exceed

than

dealer

likely the increase will not

to be increased.
over-all corporate
probably will not rise above
or
65%, effective July 1.
increase in personal taxes

20%

on

plan,

Company Act of 1940; be a diver¬
sified management company; and
a

more

is

investment

provided in the House Bill but

1, this year, and
possibly not until Jan. 1, next
year.
The withholding tax of

employees allot to the fund.
Under
the
Socony-Vacuum
plan, a fund, either closed or
open-end, to qualify must have
had net assets of at least $25,000,000 on Dec. 31, 1950; must be
registered .under

Prospectus from your

taxes will not be increased 12Vz%
as

earlier than Oct.

sayings
pl&n.
Savings
bonds, closed-end funds, and Socony-Vacuum

normal

will not exceed

ployee

Prospectus

ceiling

64%

list

of

BONDS
(Series 3B1-B2-B3-B4)

not

The
rates

IN

probably will aggregate not more
than 50%. Excess profits taxes are

probably will not aggregate more
than 50% arid excess profits taxes

the

passed

Armistice—which

Corporate

46 to 3,
one
absent; the Berger bill passed
the House, 29 to 9, 12 absent.
a

SHARES

surtax

re¬

sidered favorable to the economy.

House

by

Armistice.

and

spending

year

Korean

building and loan associations."

Certificates of Participation in

corporations
Korean

a

* normal

partment of National Securities &
Corporation, it was con¬

between

Funds

of

in¬

to

as

De¬

ihis

and

reason

and

the

of

Investment

and

opposition from banks
generally as has now developed
banks

dividuals

DIVIDEND

October,

will be less drastic both

Research

of

the

in

early

or

legislation,
in late

expected

now

is¬

to

company

SPECIAL

Economics

course,

will eventually find the

kind

September

Tax

Taxes:

advice."

AT

de¬

I

.

pursue

eligible investment companies
best fits your needs. It is contrary
to company policy for the com¬
pany
or anyone
connected with
it to attempt to advise you in that
regard. Differences in investment
companies and in the individual
needs of participants in the plan
are so great that it would be im¬

shares

your

.

.

your

is

read
carefully
the
prospectuses of investment com¬ not likely to be increased. Ceil¬
panies that interest them and also ing on over-all corporate rates
advised that the help of a broker will
probably rise from 62% to
or
banker may be helpful.
64% or 65%. ^Effective date will
"Management
policies
differ
materially," the company said. "If likely be July 1, 1951. Personal

any proposal to
make
'investment trust' shares legal for

[iBBMBi

PKaBBBaiBi
jbmbbbbbI

suggested that

employees

not.

unalterably

and

Federal'
which

Corporate

Socony-Vacuum

one

posed

mmnmmtr,

securities."

those

point, L. M. Campbell,
Secretary of Banking for the State
of Pennsylvania, wrote, in a letter
to
State Senator McPherson, "I
At

nBBBaa

company

plained,
"find
watches
them
closely to take advantage of de¬
velopments affecting the value of

shares as an
investment device for trust funds
and those who do

■*»»#

in

securities

investment

an

puts its money," the company ex¬

investment company

50 State Street, Boston

i

the

picks

agement
which

.

Putnam Fund Distributors, Inc.

|

in

interests

banking

Certain

FUND

1

»

IP

F O U N D E D

I 9 25

£3

Number 5028

Volume 174

Continued,

.

.

The Commercial and Financial Chronicle

.

(175)

"strings" would be strictly in

from first page

der to forestall
hole"

Spain Highlights Difficulties
In 0. S. Foreign Aid Policies
•

important,
whose

■

anti

from procedure with the

France and Italy, or

as
-

Moscow

should

be

versa.

f viqe
i

What Free Nations?
>

Nor

is

iteration

Truman's

President

the

of

"aid's

re¬

purpose

as

to "free nations,"
and
discrimination along these
lines, understood here, after seeing
the Communist dictatorship
f in Yugoslavia and the Fascist dic¬
tatorship inf the Argentine in¬
cluded on the preferred list. And
it is noted that even in Italy, the
police
last
April closed
down
support

past

many

clined

have

tion

Snain

against
timelv

a

..

..

been

purchases

Trn

to

to

Spain
include po-

such

approach,

as

freeing of the

establishment

of

of

press

civil

and

liberties;

general
spendcorruption^; dls-

now

and

The Means of Repayment!

.

,

in

long lion level.

removed,

been

disaffected

,

(3) But this should not preclude
from
following
a
realistic,
pragmatic and consistent course
achieve

Franco

to

for

•

u

■■

Summary

(1.)..':/,!$> seems

j.

mestic

This is evidenced in

trend
see>

carrying

the tradj_

Qn

tion of actual trade deficits

do¬

groups.

pressure

case

•

of the present

Spanish
situation,
this
would
cutting through the normally
relevant ideological,
humanitar¬
ian, and economic considerations
"for the duration" of the interna¬
tional

crisis; and extending aid
ruling regime with a mini¬
delay and conditions—

to the

of

mum

particularly

where

repayment is

involved.

Finally, and in

(5)

must

largesse

our

any

be

event*

extended,

along with the balance of our for¬
eign policy, in Calculated Hope.

of

survey

notes

War II there has been

Thus,

Spaniards are already clamoring for more than the $62 million authorized, claiming at least
three

as

four

or

hundred

millions

though their own
political
considerations
even

have effectively prompted
England's and France's NATO-

payment.
The
continuation
of
past international trade deficits

figures include

as

an

"export"

and; dwindling gold reserves (cf.
Tables

ternal

—--o

o—

\—

the

first

half

of

1951

as

& Co. Inc. said in its annual Mid-

a

But irrespective of the logic of
the situation, the Spaniards, who
have never defaulted on an ex-

-—

in

halt

a deficit;
estimated Volume of $1% billions
with the exception of 1950 —but
fell below last year's pace by oneeven then the balance was mishalf billion dollars, Halsey, Stuart
leading because the government's

will be necessary to be effective, large amount of gold shipped as
Then there is the possibility of collateral for a bank loan and
It is trouble at times of substantial r6- not truly classifiable as an export,

may

Year

Survey

of

the

Bond Market.

At

the

half failure to sustain the upward

in

trend
was

new

the

municipal offerings
of any outsize

absence

•

soldiers' bonus

-

Stuart.

Aside

issues, said Halsey,
from these issues,

Municipal "the potential supply of municipal
bonds seems as great as it has
the survey been for any postwar year.- .The

same
time,
"the yawning market into projects for educational facilities,
which municipal bonds have been municipal
utilities,, reduction of
pourfhg for several years seems > stream pollution, highways and

said,

.

that V have
developed
a
bottom. the * other "varieties
the
imposition
of jealous of their sovereign rights, Large issues of high-credit bor¬ crowded the calendar are as nu¬
jf blackballing of Spain, still the necessitate
United States could have bi-later- painful
austerity—a pill unpal¬ are extremely loath to swallow rowers have found a satisfactory merous* and demanding as^ever. A
but
smaller
issues
of recent survey reported $5.3. bil¬
dictation
over
ally extended
aid for military atable both to the public and the outside
internal market,
lions
of state
and localpublic
purposes.
It is maintained that regime. Apd it is felt by some ob¬ matters in either the political or smaller communities have been
such
military help would flow servers here that in line with financial sphere, as a condition slowly taken regardless of good; works in the planning stage. How
credit ratings in many instances.". many of these can come through
over
into the economic sphere— our Lend Lease experience, the for borrowing-with-interest.
the screen of the Credit Restraint
a
While
the
process which
apparently has attitude will emerge here also that
postwar municipal
Committee and the defense organ¬
The Background of Our Unique
been determining our recent pol- repayment is not really to be exbond market has been confusing
izations that allot materials can
Policy
because of the high
icy toward our ECA beneficiaries, pected.
volume of
only be guessed. It would seem
Irrespective of the considera- municipal
issues
available
for
Adding to Spain's resentment
Underlying all these various
that there
are
enough J essentia
over her blackballing from NATO
facets of potential resentment is tions which would ordinarily de- bidding and distribution, new fac¬
projects and enough materials tc
has been the inclusion in the Or- the traditional situation—demon- termine them, the decisions re- tors have intensified the confusion
keep the tax-exempt market ac¬
ganization (after a year of Mar- strated now again in the low state garding Spanish aid must, as else- in recent months, the survey con¬
tive—even busy—for the remain¬
shall aid) of her next-door neigh- of America's popularity in France where, now be made on the basis tinued. They include "a disagree¬
der of 1951."
bor—Portugal—a
country
gov- and other beneficiary countries— °f the many complex
factors — ment among those in control of
While
scarcities
of
materia" -,
erned
by a
dictatorship hair- of the wealthy successful uncle political and military—bound up credit and the price thereof, an
:
credit restraints and the absent
war,
annoying
eco¬
splitting!,y defined as "benevo- being disliked by his poor rela- with the unique Cold War crisis. unpopular
of bonus issues should be facto "
Because
of
the
political ele¬ nomic controls, a slowing down of
lent,"
but nonetheless
a
comtives on the receiving end, particin continued lower volume throug :
business
activities
and,
pletely
controlled
corporative ularly when they realize they are ments—internal as well as ex¬ some
the last half of 1951, part of ti
ternal—with
which
the
democ¬ strangely enough, a suspicion of
state.
'.
decadent and insecure.
slack will be taken up by offer ¬
racies must deal, they are fore¬ deflation amidst all the talk about
ings of Federal Housing bonds, th
Irritations Stemming From Our
What Strings?
sworn from acting with publiclyinflation." '
survey said. An initial offering ( ;
Loan
explained realism.
The internal
The first half of the year saw
Such incidence of unpopularity
$160 millions is scheduled for Jul
a
decline
in
The above-cited incitements to and resentment leads us to the Political influences
whose impormunicipal
bond and more are expected later i::
tance is, as this writer is learn¬
resentment stem from deep-rooted all-important practical consideraprices, Halsey, Stuart pointed out. 1951 and in following
years.
(
i and 'complex diplomatic and po- tion of what conditions, both as to ing at first hand, understood here "The market was advancing at the
"In June the government con¬
neither
by royalty, government beginning of this
litical
year but by the
considerations, that
are kind and degree, should be imfined to short-term offerings iu
official nor man in the street—
end
of
February the effect of
perhaps inescapable when con- posed by us along with extension
equally with the dictates of world bulging warehouses and artificial refunding of some $10 billions o*
sidered against the broad back- of financial aid.
Ordinarily, of
Treasury Bonds and Notes, which
opinion, has forced America's for¬ scarcities was
ground of our overall "Cold War" course, in furtherance of ecoshowing up iri mer¬
seems to imply that the Treasury
eign assistance policy to be trans¬ chandise
inventories
and
bank
policy.
Additionally, there have nomic, ideological, humanitarian,
acted on a basis of camouflage
Department anticipates
an
up¬
i been numerous irritations arising or political
loans, and the whole thing was
aims, accompanying
and subtle
ward, more favorable trend in
rationalizatic/.i.
In reflected in
municipal prices. Hes¬
lieu of frank explanation of the
TABLE
I
itant on that account, the market government bond prices," Halsey.
Stuart pointed out. "Further evi¬
purposes of its economic maneu¬ was in no
Spain's Foreign Trade Figures Since World War H*
position to take calmly
vering, the United States appears the tinkering with the long-term dence of the Treasury Depart ¬
'
Total ExportsTotal Imports
Exports U.S.
Imports U.S.
as navigating
in a sea of confu¬ interest rate on Governments in ment's thinking will come soo
Year
r
(In thousands of gold pesetas)
'

if-

reversal of six-year
increasing volume of new bond sales. Volume in
of current year shows substantial decline from 1950.

first half

ex-

to

of Municipal Bond Market

Halsey, Stuart & Co. Inc.

ing tables I and II.

as

possible

mean

whatever

Mid-Year Survey

ing figures contained in adjoin¬

aims
little

emergency

as

(4)r'.In the

Conclusions

that

our

survival—conceding

compromise

take in Spain can be

course we

the trade balance and gold-holdWe

and

a

the

us

of

the

...

have

between

lesser set of risks and evils.

be¬

60-80%

merely

we

choice

of pyramiding initial sums.
some

extended to

f at the buyer's convenience.
internal

the

Hence

Hobson's

Pamplona in Navarro* one of the
chief
Falangist Catholic strong¬
holds.
Should
the
regime fall,

;a (cynical purchase
of an addi-*
tional anti-Soviet ally, to be used

that

cause

(particularly

military exigencies.

(2)

gaged in the blackmail technique

thbm is being done grudgingly

felt

practical

and

ent

probably

us,

her

nations in a
.mutual assistance pact, and con¬
firming the impression that what¬
loan aid is

to

do is to

litical reforms of the dictatorship,

appropriately

can

with

respectable

ever

friends
we

purchase
help with as little re¬
sentment as possible.
From this

might

'

"

grateful

isting since 1898, which until the
An upward trend in new mu¬ our credit, it is small wonder that
Civil War were counterbalanced
nicipal bond financing that dates municipal prices declined."
by emigrants' remittances, that in
back
to
1944 was brought to a
Principal reason for 1951's firsteach year since the end of World

validate

included

be

to

a

time goes on. Borrowing nations,
like individuals, soon become en-

| military value to the West's cause;
both

aid

to

rat-hole. For-example,-It
to spend fhe funds for consumers' appears > Jthat ,"careful - fiscal
vir»uci»ir«Qr-.iK»rf
"»•
g°ods as we^ as capital equip- housekeeping will be indispensinent. 0nly now have the restric- able to Spain's repayment of credtions against sorely-needed wheat its even down aUthe $60-100 rnil-

/igt0iiTng

worthiness

the best

applied

lending policy will re¬
large-scale garnering of

no

tions

rower's demands for permission .ticfn

situation

president

hv

Since
sult in

,

nf thA laryp.^aig after such relaxation of the rales
equipment extended tb the Pact's governing Yugoslavia's credit.
members during
the past* halfResentments Rise With Time
fyear.
Spaniards
have
General
Unfortunately, the resentments
Bradley's recent
two-time aui thentication
of
their
country's will increase rather than lessen as
xrtaWc

loan.

or

*■
h
If ecoriblmic Standards governed there is undoubtedly a strong pos¬
Actually the chief point'of con- our foreign aid program, financial sibility that the Communists, be¬
troversy
between
Madrid- and supervision would assuredly be in ing the. only group organized and
Washington has been the bor- order to guarantee against opera¬ ready, would take over.

manifesting^ unfair^ d^sm-iminamade

to.?b£ criticized by the re-

cipient.

situation is
suueiuuu: is

here to

prevailing external and internal
political elements and the pres¬

assistance

grant

This
unavoidable in view of the

seems

^.

tive .Rome "Daily American."

'Again, (the NATO
ngam,
ujc
xiaxu

behaved.

of

f^a^nextension of largesse is in¬ exclusion of priyate ihdustry.
India* even any delay in
the

-

felt'by

form

population estimated as antiwill
disapprove of any
of aid,
authorized last September and an- couragement of the mania for inas
supporting the
nounced as available by Washing- dustrialization; removal of' the regime, we' may as well go the
ton Nov.
15, is regarded as un¬ crazy-quilt
of
20-odd. separate whole-hog and help the present
necessary
dragging-of-feet,
red and continually changed foreign government with the minimum of
tape, bureaucracy, and even ob¬ exchange
rates; ending
of the strings.
struction
by
the
administering strait-jacket over foreign capital
The- shakiness
of the present
Export-Import Bank.
As exem¬ investment; and insurance that regime is attested to by the recent
plified in the circumstances of our funds will not be confined to wildcat strikes; particularly since
America's
recent
donation
of publicly owned
areas
of.. trouble
enterprises to the the
included

and

strong,

the

whether1

the

or¬

form

vDfepsptment policy has been weak
it

in

will be plenty of time to be busi¬
nesslike and ideologically well-

shown to harbor drawbacks.

"operation rat-

an

We dio not want any more UNRRAto-Poland
catastrophes.
Condi¬

disbursement to date of only $17 elimination
of the $62% million of loan aid thrift-ism

shaky, constitutes acquiescence to
iblackmail—or at least that State
where

In the first place, the

ised credit.

is

stand

prom-

be

—

27

I

and

II

below)

would

debt

and

are

normally

to

have

*

*

.

'

•

.

.

,

sion

1945

r

708,575

£:■

1946

^

1947—

813,863

177,573

157,549

734,260
886,527

900,557
1,167,516

159,673
75,941

162,195
119,497

1948

1,148,101

1,438,625

105,668

103,511

1949

1,246,620 '
1,241,567
345,277
300,677

1,435,590
1;195,062

66,200
182,049

284,581
244,076

49,602

136,741
173,049
30,957
47,261

*

h

fl950

.

S

1951—1st

quarter.

f

f1950—1st

quarter.

♦Source—Boletin

de

Estadica,

Institute

National

23,822
Estadica;

Spain.

tExport

figures for 1950 distorted by inclusion of gold shipment of 46,600,000 gold pesetas.
TABLE
%'

-

II

■

Gold Reserves Held By the Bank of

Spain
(Value In Millions

(Value in Millions

i

Year (Dec. 31)

I

1929
1935

•

IL

1946

V-

1947

of Pesetas

Year (Deo. 31)

1948

2,667
2,536

___.

1.214

1950

___.

1,219

1949

1.215 :

___.
___.

Sources —For

Boletin

of Pesetas

de

Estadico,

1929-1949,
May, 1951.

years




'

economic, humanitar¬
political, and military mo¬

tives.
At
any
rate, in the case of
Spain, if it be decided to help her,

following
now

Mr.

tion* of

her

Estadistico

de

Espana.

strategic

value as a
ally* then,
if, because of ideological
sentimentality or special interests
at home, it be impracticable so to
proclaim, at least let our actions
be geared to those realistic lines.
defense

Applied to determining the
ture

of

financial

na¬

aid, this would
seeking of the

to dictate the

maximum of good will for us over
the immediate hump of the next

669

For

and

authentica¬

even

two years,
Anuario

Bradley's

General

Harriman's

second-line

seem

935

of the

ian,

1950,

until

self-sufficient

sible

V-S

our

attainment of

defense

Day.

or

a

pos¬

Thereafter there

March.

From 1.78%

at the begin¬

when

an

announcement

tional

active

but

of

addi

government

refunding i expected. It does not seem to u '
that present low prices can be ex
pected to continue indefinitely."
Apart from their security, th"
and at mid-year 2.36%.
f
great attraction of municipal bone
"One of the unusual develop¬
today is their tax-exempt feature
ments Of the period was the nar* said
the
survey,
adding, "Thr:
rowing of the 'spread' between the value will
gain even greater sig¬
prices of short- and long-term nificance, certainly to individual'
bonds. This was due to a neces¬
with the imposition of the forth¬
sity for the one- to five-year ma¬ coming higher tax rates."
turities to compete with the de¬
The survey closed with a pre¬
mand of business for loans, and
diction that "we may expect a 1
also for them to conform
ning

of

the

of the socalled averages had worked up to
1.72% early in February, but at
the end of March was at 2.11%
year

one

to

the

higher rates being maneuvered by
the Federal

Reserve Board.

Con¬

pute

between
our

the

money

with

not

record

breakin

the latter part of 1951

supply
higher
prices after the first of the Fed¬
bureaus that eral
Housing
issues
has
been
and regulate marketed."

sidering
the
acute
uncertainty
brought about by the public dis¬

manage

market in

and

perhaps a reduced
possibility of

some

,

Chronicle

The Commercial and Financial

.

.

.

Thursday, July 12, 1951

(176)

28

.'

*

Markets

Whyte

Says—

the

a

talks

taking the Korean peace

accomplished fact. The
fears that the end of hostil¬
ities in that area of the world
would mean an end to the

Among the amusement is¬
the one that stands out

an

as

and can¬
cellation of the- billion dollar
orders were allayed by the
statements of- Washington of:

rearmament program

ficials.

V

"

'

*

'

.

'

.7,

♦

*

page

•

•' )V

.

26

/

•

.

V '

*

.

'/

"f ■

•

to

,

.

sues

is Loew's. If
look at balance

this writing

at

take

sheets

a
and

ments

you'll

you

state¬

earnings

Institutional Series.

ing as well as the number of
shareholders were at an all time

in

a

Interest¬

1949.

of

middle

the

what

of

STORY

TIIE

Zfflr

is

now we read
peace—really, it is

of

fear

Urates

ment of the Korean war

there

a
this

Monev

'

was

The

_

the chances are

grade bonds and Preferred stocks
*>m 17.3 to 11.4%..

"shirt-sleeve

ter

.

*

English". Or bet- '

Offers

American^

"shirt-sleeve

still

•

L66 lfl££lf!S0n flfOUP

might be best described

as

situation. which is much more

in June.

64.5%

DuilnS that same time, medium

What Can It Do

But

what

investment

Is

"This

called

It's

in

of February to
.

as

little to en¬ the danger that it' might be the Fo° You".' H maybe the firs°
The company hegjnning; of World War III, and folder of its kind to be written
dividend and ensuing results were not predicthat its-, next tableC.Nqw we are confronted with

stock

common

increased from 58.2% of net assets

see

courage you.
hasn't earned its

Nesbett

of May 31,

with thatme the end of the firstof
even

Fund—has just
folder that demon-

published

the time of the commence¬

"At

the

as

qu^on Feb. 28 would be more

000,000 Wellinton

unknown.

fear of the

Speer Carbon
I.
m-

make

„

/.Nevertheless, the first

re- ■From

covery from last week's break
is, tln my'opinion, about over.
Ahead of us now is what tech¬
nicians like to call "A period
of selective buying," which in

that

means

essence

This of course

brings up the

lier

I saw
rally followed by an¬

that the picture

a

other decline and
into dullness that

but

of

then going
would prob¬

bought anything yet, don't be
in a hurry to come aboard.
weeks back I wrote The opportunities will come.

A few

looked

I've been asked if this is a

ones .'

the

like

bull

bear market, Frank¬

or/a

ly I don't know. A strict in¬

terpretation of the Dow ther

Pacific Coast

leans toward a bear mar-,

ory

Securities
;

Orders Executed

But if you

ket.

Pacific Coast Exchanges

few weeks' markets

you'll

come

'/■

•

New

"

Members
Stock

York

'

Curb Exchange (Associate)
Stock Exchange
Chicago Board of Trade

York

New

San Francisco

New York S, N. Y.

14 Wall Street

7-4150

COrtlandt

Teletype NY 1-928

Private Wires to Principal Offices
"■

San

The fact

right

Exchange

Francisco-—Santsi, Barbara.

-

,

.

privately of $6,000,000 no.es to
the company's expansion and imi
provement programs which will
our defense program
cost an .estimated $10,600,000;
gear.
/
or two syllables.
These programs include proposed
/"At the peak of expenditures in
A characteristic of "shirt-sleeve construction
at Niagara Falls,
World War II we were spending
American" is its fast pace. Here's N. Y., which will approximately
$90 billion a year. The first year
a
sample from the folder:
double the company's/.graphite
of the partial war we are now in
"It's a shock to realize it
electrode capacity, and expansion
will have cost close to $25 bil¬
but money that once spelled goods ami improvement work currently
lion. $140 billion has already been
budgeted for rearmament, and as and security for some people is in progress at the St. Mary s and
two sylBy actual count
is still in low the folder tells its story in 840
//''/./ '//' words and 778 of these .are one

■

■

...

Most of its words are

lables

ones,

•.

moment nearly $65

of the persent

billion has been authorized, which

than has

is about $41 billion more
been

spent.

"As the first year ends,

defense

only relative.

article do
time

reached a rate of
a
week, and very

•

U.

Per 100 Shares Plus Tax

•

S. Steel...@38%Aug. 29$300.00

Republic Steel @39% Oct. 11
Anaconda
.@38% Aug. 29

250.00

.@34% Sep. 10

225.00

@52% Sep. 10

275.00

..

Schenley
Pure

...

Oil

Int'l Paper

287.50

@49
Oct. 1 287.50
Radio Corp...@21
Sep. 6 187.50
So. Pacific. .@61% Sep. 10 350.00
Std. Oil N. J.. @63
Sep. 10 259.00
Amer. Can
,@111% Aug. 24 275.00
...

.

Int'l Tel & Tel.@14% Dec.

Baldwin, Lima @10% 6

....

Aug. 15
.@70% Sep. 18

Subject to prior sale
Explanatory

or

pamphlet

212.50

162.50

mos.

A.For.Pw.$7 pf.@89

Chrysler

4

487.59
212.50

request

THOMAS, HAAB & BOTTS
Members Put & Calls Brokers & Dealers

Association, Inc.
50

Broadway, N. Y. 4, Tel. BO 9-8470




the paper. In

that
that

Dtki/v

of

Christmastime

additional

an

June

quarter

and first

of

only.]

all
sales figures

sales totaled $2,708,897 to top

previous
of

the

half

year

They

Fund.

30%

of

represent
over
sales

an

of

CALL

OPTIONS

.....51%Oct.

Cit. Serv. Co.
A. & F. Pw.

101% Oct.

7%91

Oct.

Gen'I

9

1

275.00

quarter sales in its 13-year his¬
tory. They represent an increase

400.00

16% Oct.

13

How to Discover

175.00

Corp. .27% Sep.

125.00

.54

46% Oct.

And. Prich. 0il.40
on

Puts

375.00

475.00

Jan,

and

Calls

on

Request

jS EE, GRAPHIC STOCKS

Members

Put

Dealers

30 Pine St., N. Y.

&

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5

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CHARTS

1001

show monthly
highs, lews—earnings—divi¬
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every active stock listed on N. Y. Stock and
Curb
Exchanges
covering nearly 12 years
to July 1, 1951,:

Single Copy (Spiral Bound>__ $10.00
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for

STOCKS"

WHitehall 3-9177

outstanding

on

that dealers in

reports

Qom> stock Offered

June so, 1951.

MARACHE

GRANBERY,

»

MStrUllienl

total net assets of

$171,112,447 on

CO.

&

shares of
cash

Pioneer Fund will receive a

F. W. STEPHENS
15 William

St., N. Y. 5

of

bonus

jssue

0f

of

shares

324,000

Vmtoreen Instrument Co. common
stock (par

1%,

$1) is being offered to-

in

dealer

regular

A 200 PER

CENT increase in gross

sales in the June quarter over

HA 2-4S48

the

preceding three months was reported by Growth Companies.
The
Fund's
increase
in total
net

for

assets

quarter

June

the

amounted to $257,603 or 47%.

a

$548,350 three

months pre¬

viously.

Inc.

reports

004.16

as

increase
630.04
The

Fund's
was

Q>

2

^

a J.epre^em

net

Victoreen
,

Instrument

nroceeds

to

year

net

assets

Z®,™//0/6/? f0?
equipment
and

shares

$28.74

on

addftS

working capital.

Glore, Forgan Adds

lesinger has been added to the
staff of Glore, Forgan & Co., 135
South La Salle Street, members of

value
June

share,

Chronicle)

of 1,066,a 57%

the

the New York and Midwest Stock
Exchanges. Mr. Schlesinger was

1951

previously with Thomson & Mc-

earlier.

per

will
new

CHICAGO, 111.—Robert H. Sch-

net assets of $678,-

asset

Co.

ourchace

Fund

Mutual

of June 30,4951
over

a

new

of the com¬

pany.

(Special to The Financial

JOHNSTON

THE

d

f.-J/f
financing on the part

June 30, last,

total of $803,953 on
from

The
to

assets

net

boosted

increase

issue

&

Inc.

a

the record total of

addition to the. day (July 12) at $4 per share by
discount of o.%, a group of underwriters headed
of 1950.
Gross sales of the Fund for the provided net sales are in excess by Barrett Herrick Co., Inc. and
of $25,000 during the three months a. H. Vogel & Co.
June, quarter amounted to $987,to end Sept. 30.
of the offering, 103,000 shares
760 and were the largest June

625.00

16

Motors..

Booklet

600.00

Oct.

III. Central..
Mission

10

Oct.

34

N. Y. Cent. RR.

/'•••.•/•

8 $350.00

Jan.

Stnd. Oil (0.). 35%

Schenley

Tax)

month year.
8,950,_
g
June 30 last
VlCtOreeil

138,000

than

more

The Fund had

months gross

six

For the first

one

during the first
the total
June 30, last, to an all
boost

to

1951

of

pany.

of the

those

with

than

more

thousand a month

429

of Delaware Fund
reported by the com¬

of

rate

the

two. at

shares were

///.Period Shares (Plus
Pure Oil

in 4he

was

$23^555,398 and wore atthe/fate:;£ "For / the/„year, ended/
81^
more than $3,900,000 monthly.-*950
the company reported,, net.
In the previous six months sales sales of $13,818,516 and net |rH
come^of $1,760,759. /For,-,the four
to fill the rearmament orders totaled $23,392v21t./
New shareholders were' added* months ended April 30 sales-were
will
be
on
the books at

Record

They are presented as

SPECIAL

wide line of carbon

to

after Pearl Harbor.

"Oh the: labor front one .well-known /commentator points. outj
/

.

price change
on

I

ner

reading

to reach

those of the author

OPTIONS

incorporated in
and sells a
and graphite

company,

manufactures

1899,

actually greater than the first-

year

$2,076,981 in the first six months

CALL

The

pects it to happen here, but here's
something that did happen in an
American home. It was after din-

necessarily at any

not

coincide

Chronicle.

Bradford, Pa. and Niagara Falls
plants.

Nobody ex¬

overseas.

was

living room products and electronic component
the back- parts for the radio, television and
could hear my wife's, electronics industries. The coinsoon this rate will be stepped
up ground, I
voice. She'd- just: fiptshed reading pany also sells its products to
to $1 billion.
a story to Stevie/.Zv :7the stqjry
manufacturers in the electric fuf"One study recently released on
vof Rip Van Winkle.""
'vw
™ace> sieel>, chemical, electrical,
the effects of
military spending
Wellington- Fund, reported .that^utomotive,
aviation; JUtdustrial
concludes that in the first year
the potential inflationary gap ma.y gross sales of shares to the.public e^uiphsent, household and v office
in the first half of 1951 amounted * appliance industries.
be

increase

SPECIAL

That

.

novelty today.

just an interesting

expressed in this

views

{The

.

.

half year sales
;

less.

or

$4,986,314 and net income $389,895.
Except for 1932 and 1933 cash
dividends have been paid on the
Business will be good for some
if
if
number on
common stock of the company in
time, not bad. Profits will be high
each year since 1925. Payments
is if you have the for some time, not low. This, in time high of more than 67,000.
In
the past half year shares of 25 cents per share each were
pur estimation, is not a time to
outstanding increased at the rate made in March and June of this
the terms bull or sell ones common stocks."
to a different con¬

bear will be

Monterey—Oakland—Sacramento
Fresno—Santa Rosa

*

a

half

if

Schwabacher & Co.

necessity has
the very nature

vigoroul;^ast'- Speer Carbon Co.

million workers will be required.

clusion.

\

examine some

of the underlying currents ofthe past

on

of

rearmament effort.

a

"There is

spending has
$600 million

*

*

*

here that the amusement

stocks

'

common stock
$26.25 per.share. .;
i'SyyI
Proceeds of the offering, which
frockcoated language or "slang- represents authorized shares pre*
uage" from the financial world to viousjy unissued, .will, be applied^
confuse the reader. Its keynote together with the major part of
is simplicity.
: / ;
' / /
! the proceeds from a proposed sale

the actual production of the fin¬
ished
material.
In other words,

*

*

li-ji

r\f\r\

n

Its style is Iucid,
moving—as American as the
seventh inning stretch, There's no

long time lapse be¬
tween the decision to rearm and

/

interesting problem of which ably last most of the summer.
problem that You've seen the rally. Now
has troubled traders and in¬ be
prepared for another reac¬
vestors ever since they began
tion.
It is quite likely that
swapping things under the such a reaction will carry
button wood tree and will no some stocks under their re¬
doubt continue to be headache cent
lows:
In essence, this
breeders so long as we have means that if
you haven't
*

which

been deferred by

stocks to buy, a

markets.

.

which many anticipated ear¬

week's column I

In last
wrote

of the up-lift in busi¬

ness

.

5»i

*

*

*

*

*

^

tional;

.some

general market.

the

to

was
•

'si

going to commit* na¬

not

are

suknde^by,sHai^l;y/cu$ail,
man^'Bhep -stocKs*So jing our defense effort.
"Also, we will begin; experi¬
much fdr -fibew"s.
Now back
ence

while

guy's will go up.

the other

"we

than

your

will do nothing

stocks

market-^ewpbirifv.

a

end

f°re> that a comparsion_ of/the

industry—the $173,-

in the

funds

fear of war;

was

it

month

*lnveshpent Position on June 13

ingly, it v/as just about this time
told m
last year, when the war in Korea/ tour to a style that even the most
started, that we had our last big unsophisticated
correction. Then we were told understand. One of the largest
it

increase in

Fund, the
1951 did
nof present a true picture of the
investment position, and there-

formerly
portfolio

he

ran

Presi¬

management of the Dreyfus Fund,

mutual

-

invpctnrc

JR.,

pointed out that

Co. had assumed

after Dreyfus &

high on June 30, last, according
to W. Linton Nelson, President.

correction period
in the bull market which started
in

now

DREYFUS,

because of a sharp
subscriptions at the

nri

t

outstand-

The number of shares

DELAWARE FUND, reports, "We

J.

quarterly statement will not predictable/
I^ a' few weeks it f It is an eight-page illustrated
any
better reading. wilftbe^dme / evident td /£lk. that/ folder that reproduces a - worthless/U
V
«v

*

❖

nn_

sales of $38o, 120

1950 period.

like

the

in

3(1.)

share oh June

dent of the Fund,

of 11.6% over the

are

per

;:/:"" '/'/;

JACK

announced on
July 5 that it would discontinue,
on that date, sales of shares of its
search Corporation

$25.70

1950.

Mutual Funds

a

;

.

rest

latter group will include the
bit
heavy industries, steels, etc.
apparently
*
*
*

rallied

week,

this

more

depend in the main on
of the market. The

will

WHYTE=

By WALTER
market

'

fr

.

So far I've seen little to
change my mind. There are,
of course, groups that will
also move ahead.
But these
up.

Walter

The

,f

•

ingly in a reactionary period
and would most likely jump
ahead if the market moved

Tomorrow's

=

•

grudg¬ Continued from

that would back away

of

30,

compared Kinnon.

,

Volume 174

Number 5028

.

.

Commercial and Financial Chronicle
The

.

(177)

The

Indications of Current
Business
AMERICAN

IRON

AND

steel operations
Equivalent to—

Eteel

ingots

and

Activity

week

(net

month available.

month ended

or

Previous

Month

Week

INSTITUTE:

(percent of capacity)-**

castings

or

Latest

STEEL

Indicated

following statistical tabulations

latest week

Week

Ago

on

Dates shown in first column

in

or,

Crude

PETROLEUM

oil

and

gallons
Crude

100.8

103.2

94.9

—July 15

2,029,000

2,015,000

2,063,000

1,830,00(

to

output

Kerosene

output
oil

at

and

Kerosene

fuel

output

oil

output

unfinished

(bbls.)
fuel

gasoline

(bbls.)

(bbls.)

at

21,086,000

19,497,001

2,570,000

2,317,000

2.169.00C

8,806,000

8,294,000

9,295,000

8,929,000

at

June 30

freight

(number

of

__;

—

of

•

(U.

S.

,___Xi

_

88,093,000

154,348,000

5

316,562,000

5

165,609,000

162,357,000
118,280,000

—July

5

150,953,000

44,077,000

$316,705,000

Beehive coke

(tons)

June 30

___.

X

.

STORE

SALES

June 30
June 30

___

INDEX—FEDERAL

RESERVE

$296,036,000
148,342,000
147,694,000

$214,379,000

986,000

145,100

AVERAGE—100
•

V :

■

output

FAILURES

(in

OOo

Death

Surrender

734,000

1,125.000
133,700

265

273

INDUSTRIAL) —DUN

&

7

6,077,077

6,897,800

5,379,924

July

AGE

METAL

PRICES

Electrolytic

<E.

&

M.

—:

J.

——

129

188

1721*

tin

(New

Lead
•

„

(New

Lead

(St.

J Zinc

York)

S.

y.

BOND

at

.

PRICES

Government

___

DAILY

24.200c

27.425c

27.425c

22.425c

106.000c

136.000c

79.250c

4

17.000c

17.000c

17.000c

4

16.800c

16.800c

16.800c

17.500C

17.500c

17.500c

15.000c

.July
—.—July
July
July
July

—.

_

;

:

Group

Utilities

5

J77.V:-

10

'■ **7;

"

"•

97.55

Z1 '

•

97.31

■'

11.000c

v

97.32

Group

—:

_■_

109i24

110.88

114.85

113.50

115.04

BOND

YIELD

York,

997e

Average

,

Aaa

corporate

1

___—

—
-

Aa

:___

—

(per

Nickel

'_i-

-

X- Public Utilities Group—
Industrials Group

4

—

—

MOTOR

VEHICLE

PLANTS

IN

COMMODITY

FACTURERS

S.

Orders

112.37

114.08

118.40

108.34

110.15

114.66

103.13

103.47

105.00

107.Of.

Number

of

106.33-

106.39

107.62

109.24

Number

of

motor

108.70

108.34

110.70

116.22

Number

of

motor

113.50

113.12

114.46

119.41

Total

2.66

2.68

3.20

2.68

2.34

'

3.21

3.12

y

'

•

y

•

'

of

XX Production (tons)
;, y Percentage of activity.
Unfilled

orders

<

2.98

2.90

2.65

3.04

2.95

2.73

•

DRUG

AVERAGE—100

REPORTER

PRICE

3.37

3.37

3.30

3.21

—July 10
July 10

3.24

3.26

3.13

2.98

3.00

2.93

481.6

Less

2.84

2.68

_

484.5

labor

Personal

LOT

DEALERS

FOR THE

AND

Odd-lot sales by dealers
Number of orders
Number of

ODD-LOT

SPECIALISTS

EXCHANGE—SECURITIES

ON

EXCHANGE

221,045

173,687

244.242

244,969

266,566

220,204

243,835

211,058

103

100

(customers'

ACCOUNT
THE

N.

394,110

OF

Y.

150.2

151.6

X,

27,026

27,418

35,093

June 23
—

Month

Number

of orders—Customers'
Customers' short sales

XX
; y

X

,

750,440

781,195

1,026,075

.June 23

$34,973,167

Customers'

other

$37,475,320

$45,279,279

.

All

24,425

' Number

,;i.

'

23,438

27,274

228

353

26,921

"798,010

6,654
600,087

8,541

13,445

5,804

645,792

780,430

792,206

$26,320,496

$28,161,326

$33,506,448

$30,963,978

176,020

173,030

197,790

268,280

176,020

173,630

197,790

SERIES

—

U.

S.

OF

291,140

337,410

455,370

237,980

LABOR—

All

Grains

July
July

—

—
___.

Livestock
Meats

All

)
•

1
f

;

Textile
Fuel

lighting

and

BufMing
Lumber
Chemicals
•Revised.

other

than

farm

and

foods—

-.

products

and

Metals

metal

tNot

*174.5

181.3

173

265.0

256.0

262.6

237

*180.8

181.9
197.5

*73.0

59.1

44.1

20.0

18.2

*27.0

26.6

3.6

2.8

materials

products

allied

X
tL~
;

products

available.

^Includes 524,000 barrels of

3.6

and

3.3

*47.2

39.8

19.7

dividends

3.5

47.5

income—

19.5

18.2

12.1

*12.1

17.2

224.7

*234.0

198.7

21,925,000

j—

20,184,000
20,953,000

22,834,000

19,394,000
96%

22,370,000

20,050,000

309

t

(barrels)

311

24,894,000

—

—

FARMERS

BY

S.

DEPT.

159
171

OF

ll)09-July,

—

products

Other

206

y 265

205

.:y 386

239

340

products

343




256

428
—

428

312

273

280

235

215

217

161

$78,262,798

—

$18,958,789

$75,762,315

—

and eggs

(Interstate
of

202

225
227

225

—

SELECTED INCOME ITEMS OF U. S. CLASS

railway

242

'

385

—

animals

—Month

389

359

209

—

crops

products

181

437

363

crops
and

221

438

1—

276
245

222

hay_.

—

Meat

RYS.

241

275
247

...

Commerce

I

Commission)

March:

operating

income..

income

19,847,411

income

17,513,918

17,906,793

98,110,209

36,472,707

93,669,108

8,759,387

4,126,335

4,634,112

for fixed charges
89,350,822
charges
54,224,555
—3,038,023

32,346,372
■l1 1111472,736

89,034,996

3,045,579

3,315,608

;51,186,532

11113,518,315

50,940,101

36,262,399

34,920.312

—

deductions

available

Income after fixed
Other deductions

—

from

——

income

—

54,255,709

■

.Net

income

_____—

Depreciation

167.4

186.5

187.3

164

275.0

275.4

275.4

246

168.8

*169.6

170.8

149

Dividend

178.3

*178.3

182.9

3

On

common

3

138.6

138.7

138.5

133

On

preferred

3

188.2

188.2

189.3

172

Ratio

July

3

224.7

225.3

227.2

205

July
July

3

350.8

352.7

358.9

138

140.9

+

115

1,371.026
31,567,027

22,577,275

22,335,570

11,595,049

5,550.476

32,356,968

4,945.685

2.54

stock

—

stock
..

of

1,662,582

20,917,350

.99

appropriations:

July

139.2

90%

AGRICUL¬

3

137.3

91%

1914=106—As

3

runs.

19,941,000

INDEX

3

3

'

3.4

(way & structures & equip.)—
36,475,529
Amortization of defense projects
4,405,236;
Federal income taxes
——48,249,174

foreign crude

39.7

social

—

July
July

—

materials
and

197.5

176.5

3

180.5

138.1

73.2

July

;

commodities

198.0

3

3

135.3

*164.1

July

Foods
;

3

July
July
July

products i

for

month—barrels)

Dairy

Income

commodities

Farm

213.8

•160.5

164.9

44.1

income.

grain
grain and

Miscellaneous

1926=100:

X

*242.8

161.5

used

Livestock

Net

DEPT.

total

(BUREAU OF MINES)—

of

Oil-bearing

Total

NEW

412

STATES

y

RECEIVED

Truck

-

268,280

by dealers—
June 23

120,963

819

»

■

mills

end

Poultry
—June 23
June 23

PRICES

i

696,893
575,518

135,415

244.4

■:., xx

*639,272
*503,038

20.0

Fruit

28,313

X 793,875

:__

48.000c

742

;
■.

UNITED

rented

Cotton

131

23,210
654,333

June 23

purchases

21.500c

140,050

payments

from

(at

Feed

28,444

.—June 23

—

sales

Number of shares

WHOLESALE

:

22.533

sales

Round-lot
c

"176

606,741

Other sales

«

■

_June 23
—

,

652,868

contributions

and

May:

Food

dealers—

of shares—Total

Short

22,709

'-June 23

/.ales

50.500c

,

512,076

(barrels)

farm

$33,621,684

June 23

.

17.5000

24.500c

May:

Crops

766,220

June 23

—_

Round-lot sales by
i

June 23

June 23

—

56.500c

$1.80000

19.000c

COMMERCE)—Month

Tobacco

sales

Customers' other sales
Number of shares—Total sales.
Customers' short sales

Dollar value

,

total

of

Shipment

Odd-lot purchases by dealers (customers' sales)—

,

24.500c

income—

NUMBER —U.

June 23

shares

$2.23077

$2.10000

X

27.6

TURE—August,
of April 15:
Unadjusted—

purchases)—
—

$2.80000

l&.OOOc

121.0

k

'

$2.15577

MANU¬
of

„—

transfer

Capacity
150.0

6

STOCK

Dollar value

THE

interest, income

Production

XX'-Xliw

ODD-

$66,000

$2.08077

$2.67500

$2.80000

industries

PORTLAND CEMENT

94

658,722

COMMISSION:

Nominal

$90,000

$2.55000

FROM

coaches

nonagricultural

PRICES

STOCK TRANSACTIONS

Nominal

$2.10000

cars

'Ji''.

employee

)/;;X insurance

423.8

572,952

;j'
—July

24.500c
25.000c

$2.67500

industries

Proprietors'
493.6

103

—

27.780c

42.000c

$90,000

Government

547,963

INDEX—1926-36

45.300c

42.500c

Nominal

trucks

OF

Distributive
Service

June 30

—

$70,000

42.000c

employer disbursements
Commodity producing industries

Stocks

OIL, PAINT AND

$35,000

42.500c

Total

3.3

—.—June 30

.

76.688c

$35,000 '

(in billions):

2.92

.

138.923c

$212,923

45.300c

Month

—

personal Income.
Wage and salary receipts,

3.16

June 30
;

at—

J.)

SALES

>.

3.45

1

(tons)

M.

Laredo_;

vehicles—

3.54

_June 30

—

14.647c

77.688c

$35,000

———

passenger

,

April

Total

—

17.500c

139.923c

$210,000

Total

2.91

2.95

3.01

,

ASSOCIATION:

(tons)

63.500d
$2.80000

$2.55000

ASSOC.)

number

3.26

INDEX

PAPERBOARD

received

&

bulk,

(AUTOMOBILE

112.93

Total

NATIONAL

<E.

FACTORY

U.

108.34

Other

MOODY'S

72.750c

78.500d

$2.80000

17.500c

——

July 10

it———

90.160c

77.071d

(per pound)
Cobalt, 97% 'X
Aluminum, 99%. plus, ingot (per pound)____
Magnesium, ingot (per pound)

—July 10

X

88.439c

fiCadmium

10

..July 10

Group

11.608c

22.117c

$2.80000

pound)

3.26

Railroad

16.800c

116.962c

pound)
pound)

(per

3.56
*

11.808c

16.800c

.__

min

10

—July 10'
July 10
July 10

—

17.000c

21.995c
/:

117.962c

(per

of
____

25.471c

.

tCadmium

DAILY AVERAGES:

Bonds——

24.200c

27.374c

...

(DEPARTMENT
MOODY'S

24.200c

St. Louis
Sterling Exchange—

PERSONAL INCOME IN

X;:;yU. S. ..Government,

46,463,000
$295,802,000

pound)—

120.02

*

~__July 10
July 10

Industrials Group

71 ,371,000

102.09

109.42
114.08

52,620,000

$366,291,000

—

10

19,888,000

62 ,476,000

17.000c

(per

* *

10

7,884,000

22 ,689,000

57,811,000

York

tCadmium

'

'•

40,216,000

8 ,682,000

pound)—

July 10
.—July 10

_j.
.___

;

Antimony (per pound) in cases, Laredo
Antimony (per pound), Chinese Spot——
Platinum, refined (per ounce)

10.800c

4

24.200c

:

.___.—

i

(per ounce, U. S. price)
Quicksilver (per flask of 76 pounds)__

22.200c

27.425c

24.200c

$128,731,000

47 ,349,000

58,309,000

Gold

$37.67

AVERAGES:

Bonds—

______

Baa
Railroad

$46.38

$43.00

u-

A

XX Public

$52.69

$43.00

106.000c

Aaa
Aa

$52.69

$43.00

y

,

Average corporate

t

§§New

$52.69

3

4

*

,

3,837c

3

4

$153 724,000

•

21,715,000

York Straits

4.131c

4

______

at

Louis)
.

MOODY'S

_X_

i

(Check)
pound)—East St, Louis

(per

4.131c

-July
.—July
——July
July
—

8,831,000

(per pound)—

4.131c

—July

;

__.

—

„..

;

'.

New

and

3

—July

_

at

at————:

Louis)

(East St.

yyxxy
r-f U.

York)'

XX

(per pound)—

1iAntimony
Antimony

—

Straits

"

'

Sterling Exchange

138

QUOTATIONS):

refinery at—————
Export refinery at

5
,

.

278,645
\

LIFE

Silver, New York (per ounce)
Silver, London (pence per ounce)—

5

copper—

Domestic

;

'

227,216

$336,397,000

(per

New

Pig iron (per gross ton)/Scrap steel (per gross ton)

;

OF

X

n.wXl:XX

TO

43,726,000

values

Common,

Tin

-July
_.——July
.1
July

INSTITUTE

—

dividends

Silver

COMPOSITE PRICES:

Finished steel (per lb.)

r! 201)983

PAYMENTS

Electrolytic domestic refinery
Electrolytic, export refinery

Zinc

IRON

MANU¬

PRICES (E. & M. J. QUOTATIONS)—
Average for month of June:

/

BRAD-

INC.

9,216

METAL

26-

6,733,662

7,653

235,746

May:

Total

10,182,000

133,800

88,057

$146,005,000

29,322,000

900,000

of

units)

endowments

77,886,000

*152,000

CLEANER

of

benefits

Common,

(COMMERCIAL AND

STREET

(number

41,296,000

Lead

—July

(VACUUM

106,398,000

*

599,362

*90,538

438,607

STAND¬

—

INSURANCE—Month of April:
Matured

"■

kwh.)_

CLEANERS

INSURANCE—BENEFIT

107,171,000

8,710,000

$923,165

*415,811
*263,920

7,544

etc—

*$770,269

85,474

V

May

Disability payments
Annuity payments

11,032,000

259

Xx..,X

—

FACTURERS ASSN.)—Month

EDISON ELECTRIC INSTITUTE:
Electric

of

Factory sales

Copper
June 30

$753,583

S.

of

229,502

VACUUM

SIZE

107,208,000

SYS¬

"

^7'Jv'-

10,562,000

U.

,

alterations,

INC.—Month

Policy

Pennsylvania

TEM—1935-39

$404,655,000

BUREAU

and

omitted 1:

POLICYHOLDERS

5

61,929
16,341

INCORPORATIONS (NEW) IN THE
UNITED STATES—DUN &
BRADSTREET,

LIFE

5

___:
—...

OF MINES):
lignite (tons)
anthracite (tons)

DEPARTMENT

646,505

13,415

BUSINESS

783,520

657,050

July
July
July

'

-

■

coal

744,644

683,352

67,701

VALUA¬

THE

nonresidential

/Additions,

V

_

;

832,942

July

construction

Public construction
XX State and municipal—X-X-X———_ 1
_

821,615

688,042

XX"

.

OF

LABOR —Month

40,542,000

NEWS-

—

67,721
14,539

__

New

53,335,000

38,871,000

PERMIT

AREAS
OF

All building construction
New, residential XX

21,229,000

54,662,000

June 30

cars).

ENGINEERING

—

,

OUTPUT

20,797,000

June 30

(number

Xy^'■ "XX-XX

construction

Bituminous

41,097,000

114,139,000

(OOO's

ARD

cars)

CONSTRUCTION

XX RECORD:.:;vi'XX'^ /

.Federal.

65,700,000

June 30

130,249,000

URBAN

DEPT.

HOUSEHOLD

freight received from connections

loaded

24,142.000

June 30

127,736,000
23,771,000
62,969,000
40,647,000

RAILROADS:

Revenue

U:. S.

126,844,000

IN

S.

April

7,841,00C

9,036,000

Ago

(short tons) end of May

CONSTRUCTION

U.

—

7,582,000

—

AMERICAN

ENGINEERING

22,107,000

2,270,000

June 30

Revenue

COAL

5,854,001

8,542,000

Year

Month

May

5,435,35(

6,601.000

June 30

.

at

oil

ASSOCIATION OF

Private

6,169,250

6,649,000

June 30

(bbls.)

(bbls.)

oil, and distillate fuel oil (bbls.) at_.

Residual

Total

6,192,050

1:6,595,000
21,666,000

June 30

of that date:'"
Previous

(BUREAU OF MINES):
Production of primary aluminum in the U.
S.
(in short tons)—Month of

TION

6,180,550

June 30

refineries, at bulk terminals, in transit and in pipe lines—

Finished

>

42

June 30

distillate

CIVIL

of

(bbls.)

and
fuel

Gas,

(bbls.

average

(bbls.)

(bbls.)_____

oil,

r

daily

daily average

—

are as

ALUMINUM

BUILDING
June 30

stills

Residual
Stocks

—

each)

runs

Gasoline

Gas,

output

either for the

are

Month

Ago

101.5

INSTITUTE:

condensate

of quotations,

Latest

Stocks of aluminum

AMERICAN

cases

Year

July 15

tons)

production and other figures for the

cover

that date,

29

income

to

fixed

charges

'

2.56

quotation.
tBased on the average of
platers' quotations.
^Domestic, five
**F.O.B. Port
ions or more but less than carload lot packed in cases, f.o.b. New York.
Colburne, N. S., U. S. duty included.
SSTin contained.
HHDeflcit.
•Revised

figure.

the producers'

+Based

on

the

producers'
SiEased

and platers' quotations.

on

*

SO

The Commercial and Financial Chronicle

(178)

.

.

.

Thursday, July 12, 1951

if REVISIONS THIS WEEK

Securities Now in
Michigan Consolidated Gas Co.

Registrations and Filings

New

Inc., New York

Air-Springs,

(letter of notification) 14,000 shares of common
stock (par 10 cents), of which 5,000 shares are for ac¬
count of company and 9,000 shares for selling stock¬
holder.
Price—For 5,000 shares, $5 per share; for 4,000
July 9

Underwriter—d'Avigdor Co.,

shares, 10 cents per share.

Proceeds—For general corporate purposes.

York.

New

Big Horn-Powder River Corp.,

Denver, Colo.

July 2 (letter of notification) 68,125 shares of common
capital stock. Price—At par ($1 per share). Underwriter
—None. Proceeds—To drill and equip oil well. Office—
603 Railway

Co., Lincoln,

Gas

a

of common
pursuant to
purchase plan. Price—At the market (approxi¬
$9.50 to $10.50 per share). Underwriter — None.

stock

mately

Office—144 South 12th St.,

Proceeds—For construction.

Lincoln, Neb.

Century Geophysical Corp., Tulsa, Okla.
29 (letter of notification) 104,000 shares of com¬
mon stock (par $1).
Price — $2.87 Vz per share. Under¬
writer—First Southwest Co., Dallas, Tex. Proceeds—For
June

Office—1333 North Utica, Tulsa, Okla.

working capital.
Continental
Dallas

June 27

Sulphur & Phosphate Corp.,

Tex.

(letter of notification) 23,967 shares of common

stock (par 10 cents).
Proceeds

None.

—

share. Underwriter—
To finance drilling and exploration
Price—$4

per

Office—2010 Tower Petroleum Bldg., Dallas,

expenses.

Clifford

St., Detroit, Mich.

National

Neb.

July 2 (letter of notification) 25,000 shares
stock (par $3.50) to be offered to employees

(8/7)

July 6 filed $15,000,000 of first mortgage bonds due Aug.
1, 1976. Underwriters—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Smith, Barney & Co. and Blyth & Co., Inc. (jointly);
White, Weld & Co. and Lehman Brothers (jointly); Harriman Ripley & Co. Inc. and Union Securities Corp.
(jointly); Glore, Forgan & Co. and W. C. Langley & Co.
(jointly). Proceeds—From sale of bonds plus $5,012,000
from sale of 358,000 shares of common stock to American
Natural Gas Co., parent, will be used to repay bank loans
and to finance expansion program. Bids—To be opened
at 10:30 a.m. (EST) on Aug. 7 at company's office, 415

Exchange Bldg., Denver, Colo.

Electric &

Central

•

Aviation

(par $5).
Price—At market (approximately $16 per
share).
Underwriter —Thomson
&
McKinnon,
New
York.
Proceeds—To Elmer Wellin, the' selling stock¬
holder.

Official

Films, Inc., Jersey City, N. J.
July 3 (letter of notification) 5,911 shares of class A
stock (par 10 cents).
Price—At market (but in no event
less than $2.62Vz per share).
Underwriter—Aetna Se¬
curities Corp., New York.
Proceeds—To Edward R.
Murrow, a director.
Office—26 Journal Square, Jersey

City, N. J.

Tex.

Dakota

Petroleum Co.,

Ashley, N. D.

stock

(letter of notification) 10,000 shares of class A
(no par) and 40,000 shares of class B stock (no

par).

Price—$2

June 29

share. Underwriter—None. Proceeds

per

—To drill wells and

secure

additional acreage.

Eureka
June

Silver King Mines Corp., Boise, Ida.
(letter of notification) 300,000 shares of com¬

27

10 cents per share. Under¬
writer
None. Proceeds—For quartz mining develop¬
ment and production. Office — 532 First National Bank
Bldg., Boise, Ida.

capital stock.

mon

Price

—

Pittsburgh Coke & Chemical Co.
July 5 filed 140,243 shares of common stock (no par)
to be offered for subscription by common stockholders
at rate of

share for each four shares held.

one

Price—To

be

supplied by amendment (proposed maximum offering
price is $30 per share). Underwriter—None. Proceeds—
From the sale of this stock and the

proceeds from certain
borrowings together with company funds will be ap¬
plied to construction program.

—

Falls Creek

June

27

letter of notification) 400,000
(par 10 cents). Price—20 cents
share. Underwriter—None. Proceeds—To S. A. Lein-

shares of
per

Mining Co., Seattle, Wash.

(amendment to

Robinson

Bros., Inc., Washington, D. C.
(letter of notification) .2,000 shares of capital
(no par). Price—$25 per share. Underwriter—
None.
Proceeds—To purchase building supplies. Office

June

29

stock

—1239 Kenilworth

Ave., N. E., Washington, D. C.

stock

common

ing and Philip Seymour Heath, two selling stockholders.
Office—418 Second & Cherry ^ldg., Seattle 4, Wash.

July 2 (letter of notification) 13,598 shares of capital
stock, of which 10,000 shares are to offered to public and
3,598 shares are to be issued to Role, Inc., the predecessor
company. Price—$5 per share. Underwriter—None. Pro¬
ceeds—To purchase additional materials and machinery

Gas Installations Inc.,
Utica, N. Y.
July 9 (letter of notification) $64,000 of serial notes and
3,800 shares of common stock (par 10 cents) to be of¬
fered in units, viz: (a) $45,000 of senior notes due Sept.
1, 1951 to April 1. 1955, and 1,901 shares of stock to
First York Corp. at a price of $45,190; (b) 50
units, each
consisting of a $100 junior note and 10 shares of stock
at $101 per unit to stockholders of Household Services
Inc.; (c) one unit of a $1,000 junior note and 99 shares

New

of stock to directors and larger stockholders

who is the selling stockholder.

hold

Services;

and

(d)

13

units

of House¬

Services.

Underwriter—None..

Proceeds—To purchase
installations in Boonville, N. Y., formerly
owned and operated by Robert E. Harvey Gas Co.
gas

General Finance Corp., Chicago, III.
July 3 (letter of notification) 46,153 shares of common
stock (par $1), to be offered to employees, officers and
directors of company.
Price—$6.50 per share. Under¬

writer—None.

Chicago

as

St., Chicago 1, 111.

Corp., New Orleans, La.
June 25 (letter of notification) 10,000 shares of class "A"
non-voting common stock and 10,000 shares of class "B"
voting common stock. Price
At par ($10 per share).
Underwriter
None. Proceeds
For equipment and
worknig capital. Address—P. O. Box 186, 822 Perdido
St., New Orleans, La.
—

—

Ft.

$17.75

July

(B.

2

notes

Alexander

first deed of trust

on

County, Md.
ton, D. C.

Harris, President,

(letter

land in Montgom¬

notification)
property

on

$225,000 of promissory
Washington, D. C., of

in

Martha F. Riess and Elsie E. Marks. Underwriter—B. F.
Saul Co., Washington, D. C.

West
June

27

—

$105.50

Virginia Water Service Co.
(letter

per

of notification) 1,000 shares of $5 cu¬
stock (no par).
Price—
share. Underwriter—Allen & Co., New York.

Proceeds—For

Winston

new

construction.

Newell

&

Co., Minneapolis, Minn.
shares of common stock (par $5).
Price—To be supplied by amendment.
Underwriter—
J. M. Dain & Co., Minneapolis, Minn. Proceeds—To re¬

July

5

duce

bank loans.

filed

50,000

Proceeds—For general corporate
purposes.

Filings

Facilities, Inc., Phoenix, Ariz.
4 (letter of notification) 193,800 shares

ferred

stock

$1.50 per unit.
Underwriter — None.
Proceeds
To
purchase equipment and material. Office—1018 Title &
—

Phoenix, Ariz.

★ American Bosch Corp., Springfield, Mass.
May

17 filed

Price—At

98,000

the

shares of

market

Underwriter—None.

common

(approximately

stock

$15

Proceeds—To Allen

(par

per

&

$2).

shared

Co.

(owner
15.1% of outstanding shares). State¬
ment effective July 3.

of

198,000 shares,

American

Boston

:

"

Pittsburgh

San Francisco

Private Wires




to

all

offices

Chicago

Cleveland

To

—

or

Brake

Shoe

stock

purchase plan.

Price—To

be not

greater than

the market price on the date of the offering, or no less
35% of such price. Underwriter—None. Proceeds
be added

to

common at $25 per share.
Co., New Haven, Conn. Pro¬

the
&

Frederick; Machlin, Vice-President of the
/

Ky.

.

if Bank of Nova Scotia, Toronto, Canada
June 12 filed 300,000 shares of capital stock (par $10) *
being offered to stockholders of record June 30, 1951,
with unsubscribed shares to be publicly offered after t

Underwriter—None. Pro¬
effective

Price—$30 per share.

ceeds—To be added to general funds. Statement
June

;

28.

Bigelow-Sanford Carpet Co., Inc.
May 16, filed 100,000 shares of 4V2% cumulative pre¬
ferred stock, series of 1951 (par $100), of which 39,604^
shares are issuable to holders of 26,403 shares of 6 9F'
preferred stock on the basis of IV2 shares for each pre-'
ferred share held. Public offering of the additional 60,-;
000 shares of new preferred stock has been deferred due
to

market conditions. Underwriters—Harrimah
Co., Inc.; Kidder, Peabody & Co., and F. St;
& Co. Proceeds—For general corporate puijM

present

Ripley &

Moseley

J

poses.

Inc., St. Louis, Mo.
June 7 filed 197,737 shares of common stock (par $15),;
of which 124,187 are being offered in exchange for WohlShoe Co. capital stock on a 2V2-for-l basis; offer to
expire on July 16. The remaining 73,550 shares are of¬
fered to key employees under the company's stock option
plan. Proceeds—For general corporate purposes. State-'
Brown

Shoe Co.,

'•

Burlington Mills Corp.
p1
March 5 filed 300,000 shares of convertible preference;
stock

(par $100). Price—To be supplied by amendment.
Underwriter—Kidder,
Peabody
&
Co.,
New
York.;

Proceeds—For additions and improvements to plant $nd

equipment. Offering date postponed.

v

...

Copper Co., Ltd., Vancouver, Canada

April 20 filed 200,000 shares of capital stuck. Price—At
par ($1 per share). Underwriter—Harry M, Forst. Pro¬
ceeds—For exploration and development work.
Products Co., Quincy, III.
notification) 3,000 shares of non-voting
common stock
(par $5). Price—At the market. Under¬
writer—Bosworth, Sullivan & Co., Denver, Colo. Pro¬
ceeds—To two selling stockholders. Office—901 S. Front
Fibre

Central

June 11 (letter of

St., Quincy, 111.

G, due 1981. Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; W. C. Langley & Co. and Hemphill, Noyes,
Graham, Parsons & Co. (jointly); Lehman Brothers;
Coffin & Burr, Inc. and The First Boston Corp. (joint¬
ly); Carl M. Loeb. Rhoades & Co. and Blair, Rollins &
(jointly); Kidder, Peabody & Co.; Smith, Barney
Co. Proceeds—To reduce short-term borrowings aqd
for additional construction requirements.
Bids—Invita¬
Co. Inc.
&

tions
21

for

general funds.

are expected to be published about July
probably opened on July 31.
rt

bids

with bids

Checker

Cab

Manufacturing Co.

June 28 filed 433,444
record

(7/24)

shares of common stock (par $1.25)

offered for subscription by

be

common

stockholders

24 at rate of one new share for each
rights to expire on Aug. 9. Price—To be

July

held;

Petroleums, Ltd., Toronto,

Canada
shares of common stock (par $1)
Price —50 cents per
share. Underwriter—Willis E. Burnside & Co., Inc., New
York. Proceeds—To take up option and develop prop¬
■i
erties.
Offering—Indefinitely postponed.
March 14 filed 900,000

to

offered

be

"as

a

speculation."

if Chief Consolidated Mining Co.
June 20 (letter of notification) 218,181 shares of capital
stock (par $1) being offered to stockholders of record
June 28 on basis of one new share for each 5 Mi shares
held, with

an

oversubscription privilege; rights to ex¬

pire July 16. Price—$1.25 per share. Underwriter—J. A.
Hogle & Co., Salt Lake City, Utah. Proceeds—For fur¬
ther exploration of ore runs below present water level.
Continental Car-Nar-Var Corp.,

than

—To

and

$35 per share). Underwriter — None. Proceeds — For
working capital. Office—1409 Winchester Ave., Ashland,

Co.

June 29 filed 50,000 shares of common stock (no par) to
be offered to certain officers and key employees
through
a

par

Ashland Oil & Refining Co., Ashland, Ky.
;
May 21 (letter of notification) 1,000 shares of common
stock (par $1).
Price—At the market (approximately?1

Chevron

of 6% pre¬
of common

(par $1)
and 193,800 shares
(par 25 cents) to be offered in units of one share
preferred and one share of common stock. Price—

Trust Building,

f

supplied by amendment. Underwriters—None. Proceeds
—To repay loans and for additional working capital,
j

Air

of

Philadelphia

at

company.

share

Previous Registrations and

stock

New York

preferred

of

June

,,

,,/-i

i

Armstrong Rubber Co., West Haven, Conn.

to

County Telephone & Telegraph Co.,
Myers, Fla.

Underwriters—Florida Securities Co., St. Peters¬
a.; and H. W. Freeman & Co., Fort
Myers, Fla.

}

July 6.

if Central Vermont Public Service Corp. (7/31)
Vr
June 29 filed $2,000,000 of first mortgage bonds, series

Co.

of

secured

on

Underwriter—B. F. Saul Co., Washing¬

F.)

Proceeds—To repay bank loans. State-

May 21 (letter of notification) 1,000 shares of 4%%
mulative convertible preferred stock (par $50) and 1,000"
shares Of class A common stock (no par). Price — The;*

Canam

Estates, Inc., Washington, D. C.
of notification) $30,000 of promissory

ery

Saul

ment effective

4% shares held; unsubscribed
publicly. Price—$45 per share. Un- £

each

for

share

one

derwriter—None.

Inc.

(letter

notes secured

notification) 6,000 shares of 5% cumu¬
stock, series B. Price—At par ($25 per

burg, l

per

Works

notification) not in excess of 1,600
stock (par $1).
Price — At market
share). Underwriter — LairdCo.,

Proceeds—To

Rose Hill

June 27 (letter of
lative preferred

share)

common

York.

29

of

mulative convertible preferred

Gulf Aluminum

Inter

of

(about

June

Metal

(letter

shares

Proceeds—-To The First National Bank of

Trustee for the Estate of Owen L. Coon. Of¬

fice—184 West Lake

Address—P. O. Box 146, El Cajon, Calif.

Ronson Art

each

consisting of a
$1,000 junior note and 100 shares of stock of $1,010 per
unit to directors and larger stockholders of Household
propane

and repay loan.

6

of

shares to be offered

ment effective June 26.

Role Co. of California, El Cajon, Calif.

July

first to be offered to preferred stockholders at rate

Oct. 5.

Inc., Stamford, Conn. July 2 (letter of notification) 9,370 shares of common
stock to be offered to employees under stock purchase
plan. Price—$14 per share (at rate of 36 cents per share
per month).
Underwriter—None. Proceeds—For work¬
ing capital.
Pitney-Bowes,

(no par) of which 54,444 shares f

pating preferred stock
are

ceeds

Corp.

ADDITIONS

if Arden Farms Co., Los Angeles, Calif.
r J
- >
June 11 filed 55,000 shares of $3 cumulative and partici-i

Underwriter—Gruntal

July 5 (letter of notification) 700 shares of common stock

INDICATES

v

mon

Brazil, Ind.

.

—

(letter of notification) 150,000 shares of com¬
(voting) stock (par $1). Price—$2 per share. Under-

March

5

writers—Sills, Fairman & Harris, Inc., Chicago, and
Gearhart, Kinnard & Otis, Inc., New York. Proceeds—
working capital and general corporate purposes.

For

Temporarily deferred.

^

v

.

•

Volume 174

Number 5028

The Commercial and Financial Chronicle

...

★ Continental Electric Co., Geneva, III.
March 2 (letter of
notification) $300,000 of 6% sinking
fund debentures due Dec.

Idaho Custer Mines, Inc., Wallace, Idaho
8 (letter of notification)
800,000'shares of

June

1, 1975 (to be issued in units

assessable

NEW ISSUE CALENDAR

of'$100, $500 and $1,000 each). Price—91% of principal
amount. Underwriter—Boettcher
& Co., Chicago, 111.
Proceeds—To retire indebtedness and for
working capi¬
tal.
Offering—Postponed indefinitely.

July 12,

(EDT)

Eq.Tr.Ctfs.

Washington Gas Light Co. 11:30

stock

(par five cents) to be offered for subscription by
stockholders of record June 30,
1951, on a one-for-five
basis, with an oversubscription privilege; rights to expire
orr Oct.
1.
Price—To be determined
not

exceeding $1

per

ceeds—For

working capital.
Bank Bldg.,
Spokane, Wash.

Office—824

Old

Cosmopolitan Hotel Co. of Dallas, Tex.
Dec. 13 filed $1,500,000 of 2% debentures due
1965.
—At face value.

Underwriter—None.

to

secure

construction

Scranton Electric Co

July 18,
Price

hotel.

Texas

Gas Transmission

panies represents l/24th of
of

Each share of the 24
unit

a

in

each

of

the

contains

24

one

Underwriter

Lehman Corp.

share
.

(par $100). Proceeds—From sale of preferred, together
be received from the sale of 350,000

Cuban

Cuban companies filed

1,500,000

19.

with proceeds to

additional

(EDT) .Bonds

Mississippi Power Co. 11
Louis-San

St.

Francisco

March 14.

a.m.

(EDT)

Common

Lehman Corp. (7/23)
July 2 filed 129,785 shares of capital stock (par $1), to
be offered to stockholders of record about July 23 at

Common

Manufacturing Co

rate of

one

To

approximately

.Bonds

.

127,364 shares of

*

common

ments in railroad and kindred securities.

Bonds

August 7, 1951
Michigan Consolidated Gas Co.
10.30 a.m. (EDT)

Price—70 cents

per

share.

Under¬

writer—None.

Proceeds—To pay obligations.
Office—
Fidelity Bldg., Oklahoma City, Okla. Offering—Tem¬
porarily postponed "because of market conditions."
Dome

Southern Counties Gas Co. of California

Bonds

thereof); 20 shares of common stock (par $10.) and 40%

September 11, 1951
H,

of fractional

Alabama Power; Co.
rf

Bonds

"f't.

'

ft:'"

"

be "offered

acquire

property for
Office—Toronto, Canada.
*

stock

(B. F.)

(letter

will act

as

not

but

broker.

less

than

Hornblower

tion

2,000

$40
&

Proceeds—To

shares of

per

share.

Weeks,

a

40

Price—At 85%

or 95% of the highest sale
the New York Stock Exchange on
which the option is delivered to the employee.
on

Underwriter—None.

Proceeds—For working capital.

Under¬

New

York,
selling stockholder.

Drayson-Hanson, Inc., Los Angeles, Calif.
June 4 (letter of notification) 50,000 shares of common
(par

Detroit, Mich.
shares of common stock (par $1), to
employees pursuant to stock op¬

to certain

plans."

the day on

capital

j

stock

Fruehauf Trailer Co.,

price of the stock

& Co., Inc.

of notification)

Price—At

writer—None,

drilling operations.

cents).

Price—$1.20 per share. Under¬
writer—Edgerton, Wykoff & Co., Los Angeles, Calif.
Proceeds—To purchase real property and plant.

General

Telephone Corp. (7/18)
shares of common stock .(par $20).
Price—To be supplied by amendment. Underwriter—
Paine, Webber, Jackson & Curtis, New York. Proceeds—
For additional investments in common stock equities
of subsidiaries, temporary advances to subsidiaries for
June 29 filed 300,000

reduction of their bank loans and for

construction

use

in

their

for general corporate

and

programs,

'

Duplan Corp.

(Fla.)

29 filed 453 shares of class A common stock (par
$100); 5,706 shares of 5% class B preferred stock (par
$100), cumulative beginning three years from July 10,
1950; 8,000 shares of 4% revolving fund class C stock
(par $100); 2,000 shares of 4% revolving fund class C
stock (par $50); and 4,000 shares of 4% revolving fund
class C stock (par $25).
Price—At par. Underwriters
—None. Proceeds—To construct and equip frozen con¬
centrate plant at Forest City, Fla.

notes

Drakenfeld

1951
pur¬

:

poses.

June 28

(letter of notification) 4,000 shares of common
stock (no par) to be sold from time to time on the New
York

Stock

Exchange. Price—At market (about $13.75
Underwriter—None, but Dominick & Domi-

share).
riick, New York, will act

per

C.

as

brokers. Proceeds—To Ernest

Geier, Chairman, who is the selling stockholder.

if El Paso Natural Gas Co.

(7/25)
70,000 shares of convertible second pre¬
ferred stock (no par). Price—To be
supplied by amend¬
ment.
Underwriter
White, Weld & Co., New York.
Proceeds—For expansion program.
June

29

filed

—

Farmers Mutual

Telephone Co., Madison, Minn.
(letter of notification) 2,600 shares of common
stock and 1,200 shares of preferred stock.
Price—$35 per
share for common and $50 for preferred. Underwriter—
May 9

None,

r

Proceeds

—

To

rebuild

rural

telephone

system.

Office—Cerro Gordo, Madison, Minn.
Felters

Co., Boston, Mass.
' i
W
(letter of notification) 670 shares of common
stock (par $10). Price—To range from
$9 to $10.50 per
June

18

share.

Underwriter—Proctor, Cook & Co., Boston, Mass.

Proceeds—To Emma B. Proctor, the selling stockholder.

if Food Machinery & Chemical Corp.
June 13 filed 100,000 shares of common stock
(par $10)
to be offered to employees. Price—To be
based on mar¬
ket

on

share).

New

York

Stock

Exchange

(about

$34.50

per

Underwriter—None. Proceeds—For general

cor¬

porate purposes.

Statement effective June 29.




royalty interests to be issued by licensors

certain

patents for which

no

consideration will

be received. Underwriter—None. Proceeds—For further

"

June

June 15 filed 115,000

15

under

development

Exploration (Western) Ltd. (7/23)
July 2 filed 500,000 shares of common stock (par $2.50).
Price—To be supplied by amendment. Underwriters—
Carl M. Loeb, Rhoades & Co., New
York, and Wood,
Gundy & Co., Ltd., Toronto, Canada. Proceeds—To retire

June

;

of

an

el'ectrical sound"'apparatus

called

"Fluid Sound."

219

to

share.

per

June 25

Offering—Ex¬

if Deardorf Oil Corp., Oklahoma City, Oklai r i • T
May 18 (letter of notification) 200,000 shares of common

and

value

Lindberg Instrument Co., Berkeley, Calif.
(letter of notification) $100,000 of 6% promis¬
sory notes
(in denominations of $1,000 or fractions

August 31, 1951

yet determined.

(par 10 cents).

asset

net

effective July 5.

Bonds

Fosgate Citrus Concentrate Cooperative

stock

the

stock (no par)
being offered for subscription by common stockholders
of record July 5 on basis of one share for each five
shares held; rights to expire July 19.
Price — $50 per
share. Underwriter—Blyth & Co., Inc. Proceeds—To be
applied toward construction of new buildings. Statement

1951

Central Vermont Public Service Corp

stock

(par $5).
Price—To be equivalent to approximately 95% of the
net asset value of all shares of stock
outstanding imme¬
diately prior to the public offering plus a commission
of 50 cents per share to security dealers. Underwriters-**
Dealers may be underwriters. Proceeds — For invest¬
act date not

share for each 15 shares held. Price-

^Lily-Tulip Cup Corp., New York

Preferred

July 31,

.

Corp., Chicago, III.

filed

new

June 15, filed 75,000 shares of common

$10,000,000 sinking fund debentures due
April 1, 1966. Price — To be supplied by amendment.
Underwriter—Halsey, Stuart & Co. Inc. Proceeds—To
reduce bank loans by $9,000,000, and the balance added
to working capital. Withdrawal—A request was filed on
July 2 to withdraw statement.

23

be

Underwriter—None. Proceeds—For investment.

El Paso Natural Gas Co

March 23 filed

Oct.

Statement effective

Amendment—On May 8 SEC granted an ex¬

doned.

.Equip. Tr. Ctfs.

if Cudahy Packing Co.,

Culver

returned unopened.

was

emption from competitive bidding. Preferred may be
privately placed,
but reported, temporarily aban¬

Bonds

Ry.

July 25, 1951

,

Utilities

Public

General

27, which

Pacific Power & Light Co...
United Gas Corp. 11:30 a.m. (EDT)___

shares

to

Common

July 24, 1951
Checker Cab

shares

Corp., the parent, will be used for new construction.
Bids—Only one bid, from Union Securities Corp. and
Salomon Bros. & Hutzler (jointly), was received March

1951

(EDT)

noon

common

Common

(Western) Ltd..

—

each of their respective common stocks to be issued to
the Cuban-Venezuelan Oil Voting Trust. Statement ef¬

fective June

Preferred

__—

•

the 24

1,

Exploration

14.

Common

July 23,

>

Dome

unopened. Offer¬
Statement effective

indefinitely.

Jersey Central Power & Light Co.
Feb. 21 filed 40,000 shares of cumulative preferred stock

■

cer¬

June 19.
June

Corp

Meridian & Bigbee River Ry. 10 a.m.
Montana-Dakota Utilities Co

companies.
None, but Jay H.
Schafrann, 20 Pine St., New York 5, N. Y., will act as
servicing agent.
Proceeds—For drilling and explora¬
tion expenses and working capital.
Statement effective
$2 per unit.

—

March

1951

com¬

of voting trust

Trust, which unit

stock

common

ing—Postponed

July 20, 1951

mon. stock in 24 companies.

Price

Stuart & Co. Inc., which was returned

..Common

Statement

x

1981.

Proceeds—For expansion program. Bids—Only one bid
received by company on March 27, from Halsey,

was

..Debs. & Common

July 19,

&

Bros.

Jersey Central Power & Light Co.
Feb. 21 filed $1,500,000 first mortgage bonds due in

1951

Corp
Green River Steel Corp

Cuban-Venezuelan Oil Voting Trust
March 29 filed 1,500,000 units of
voting trust certificate!
representing one share of one and two cent par com¬

of'the

Common
Common
..Preferred

General Telephone

effective June 15.

tificate?

Common

.....

$6.37V2

to $6.62% per share).
Underwriter—
Boyce, Phila., Pa.
Proceeds—To Harry
A. Ehle, Vice-President, who is the selling stockholder.
Stein

Fibers, Inc
Marquette Cement Manufacturing Co
New York State Electric & Gas Corp

Proceeds—To pur¬

of

mately

Glass

chase debentures of Statler Dallas
Co., Inc., which com¬
pany will construct Dallas hotel. Business—A non-profit
corporation under sponsorship of Dallas Chamber of

Commerce

(EDT) .Bonds

a.m.

July 17, 1951

National

Herrin

June 26

'

by directors, but
Underwriter—None. Pro¬

share.

Price—25 cents
& Co., Seattle,
Proceeds—For development of Liv¬
M.

Internationa I Resistance Co., Phila, Pa.
(letter of notification) 1,500 shares of common
stock (par 10 cents).
Price—At the market (approxi¬

July 16, 1951
common

non¬

stock (par 10 cents).

Underwriter—H.

Wash., and others.
ingston mine. Office—Scott Bldg., Wallace, Idaho.

1951

Texas & Pacific Ry. noon

common

share.

per

-

Cornucopia Gold Mines
May 14 (letter of notification) 229,800 shares of

31

(179)

if Glass Fibers, Inc., Toledo, Ohio
June

(7/17-18)

26 filed

Loven Chemical of California

June 15

(letter of notification) 86,250 shares of capital
par
($1 per share).
Underwriter—
Floyd A. Allen & Co., Los Angeles, Calif. Proceeds—For
working capital. Office—244 So. Pine St., Newhall, Calif.
stock.

Price—At

Marquette Cement Manufacturing Co.

(7/17)

June 27 filed 100,000 shares of common stock

(par $10),
will be offered for account of the
company and 50,000 shares for account of 15 selling
stockholders.
Price—To be supplied by amendment.
Underwriter—A. G. Becker & Co. Inc., Chicago, 111.
Proceeds—For general corporate purposes.
of which 50,000 shares

Mayfair Markets, Los Angeles, Calif.
May 24 (letter of notification) 5,000 shares of preferred
stock

(par $50) and 5,000 shares of common stock (no
to be offered in units of one share of preferred
and one share of common stock.
Price—$60 per unit.
Underwriter
None.
Proceeds — For working capital.

par)

—

Office—4383

McGraw

Calif.

Bandini Boulevard, Los Angeles 23,

(F.

H.)

& Co., Hartford, Conn.

May 17 (letter of notification) 4,650 shares of common
stock
(par $2).
Price—$9 per share.
Underwriter—
Granbery, Marache & Co., New York. Proceeds—For
working capital.
Mercantile

Acceptance Corp. of California

May 18 (letter of notification) 4,881 shares of first pre¬
ferred stock.
Price—At par ($20 per share).
Under¬
writer—Guardian Securities Corp.
Proceeds—For gen¬

200,000 shares of common stock (par $1).
To be supplied by amendment. Underwriter—
McCormick & Co., Chicago, 111. Proceeds—For proposed

eral corporate purposes.

Southern California plant and for

June

Price

—

working capital.

Golconda Mines Ltd., Montreal, Canada
April 9 filed 750,000 shares of common stock.
Price—
At par ($1 per share)." Underwriter—George F. Breen,
New York.
Proceeds—For drilling expenses, repayment
of advances and working capital. Offering—Date not set.

if Green River Steel Corp. (7/18)
June 5 filed $4,000,000 of 3V2% debentures due 1961 and
320,000

shares of

common

stock

(par

25

cents)

to

be

offered in units of $l,000'of debentures and 80 shares of
stock. Price—To be

supplied by amendment. Underwriter
—Equitable Securities Corp., Nashville, Tenn. Proceeds
—To be applied to cost of acquisition, construction and
installation

of

facilities

Business

and

for

other

corporate

pur¬

Organized to construct and operate
electric furnace steel plant and rolling mill. Office —
Owensboro, Ky.
'V-/

poses.

Inc., Kansas City, Mo.
notification) 8.92 shares of capital
stock (par $1). Price—Not to succeed $9.50 per share.
Underwriter—Morgan & Co., Los Angeles, Calif. Pro¬
ceeds—To Thomas F. Ryan, III, the selling stockholder.
Mid-Continent Airlines,
26

(letter

of

Mississippi Power Co., Gulf port, Miss. (7/23)
22 filed $4,000,000 of first mortgage bonds due
Aug. 1, 1981. Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Union Securities Corp. and Equitable Securities
Corp. (jointly); Salomon Bros. & Hutzler; First Boston
Corp.; Otis & Co.; Kidder, Peabody &■ Co.; Merrill
Lynch, Pierce, Fenner & Beane; Blair, Rollins & Co.,
Inc. and Carl M. Loeb, Rhoades & Co. (jointly); Lehman

June

Brothers.

Proceeds—For

To be opened at 11 a.m.

construction program.

(EDT)

on

Bids—

July 23.

—

if Mitchum Pharmacal Co.* Paris, Tenn.'
May 18 (letter of notification) 290,000 shares of common
Price—At par ($1 per share).
Underwriter—
None. Proceeds—For working capital. Offering—Not to
stock.

Hilton

Hotels

Corp., Chicago,

III.

March 30 filed 153,252 shares of common stock (par $5)
now offered to holders of common stock of Hotel Wal¬

dorf-Astoria
such

stock

Corp.

on

a

in

exchange

for

their

holdings

of

share-for-share basis; offer expires on

July 27. Dealer-Manager
Co., New York.

—

Carl M. Loeb, Rhoades &

be made to public.

if Montana-Dakota Utilities Co.
June 27

filed

(7/20)

(par $o)
stockholders on basis of

162,838 shares of common stock

to be offered July 20 to common

Continued

on

page

32

Chronicle

The Commercial and Financial

32

.

.

Thursday, July 12,

.

195X

(180)

June

held; rights to expire

share for each eight shares

one

Price—To be supplied by amendment.
Blyth & Co., Inc. and Merrill Lynch,
Pierce, Fenner & Beane, New York. Proceeds—For con¬
Aug. 8.
Underwriter —

about

struction program.

Plywood Corp., Portland, Ore.
of notification) 76 shares of common
stock (par $2,500), of which 60 shares will be offered
In 20 units of three shares each to 20 individuals who
are not stockholders, and 16 shares are to be offered to
present stockholders on basis of one share for each two
shares owned. Price—Per unit, $12,500; and per share,
$2,500 to present stockholders. Underwriter—None. Pro¬
ceeds—To acquire timber and a peeler plant operation.
Office—1500 S. W. Harbor Drive, Portland 1, Ore.
Multnomah

June

14

(letter

Bangor Slate Co.,

National

Wind Gap, Pa.

40,000 shares of common
stock (par 50 cents) and 40,000 shares of 8% non-cumu¬
lative preferred stock (par $1) to be offered in units
of one share of each class- of stock.
Price—$4.50 per
unit.
Underwriters—None; directors will direct sales.
Proceeds—For payment of debt and purchase of ma¬
chinery.
Office—Male Street, Wind Gap, Pa.
(letter of notification)

June 8

(letter of

11

Underwriter—None. Proceeds—For working
Street Terminal, Upper Darby,

—At par.

capital.
Office—69th
Pennsylvania.

Plate Glass Co.

Pittsburgh

stock (par $10)
of the company and
its subsidiaries under a stock option plan.
Price—At
85% of the market price on the New York Stock Ex¬

June 27 filed 450,000 shares of common
to

be offered to certain employees

Underwriter—None.

change at time options are granted.
Proceeds—For working capital.

of first series 5 xk % prior pre¬
ferred stock (par $100) and 27,495 shares of common
stock (no par) to be offered in exchange for Thomas
Steel Co. 414% cumulative preferred stock (par $100)
at rate of 8/10ths of a share of 514% preferred and 1%
shares of common stock for each Thomas Steel pre¬
ferred share (unexchanged Thomas preferred stock will
be called for redemption at $105 per share). Underwriter

Wash.

Potlatch Yards, Inc., Spokane,

217,904 shares of common stock
for subscription by

fice—909 W. Sprague

(7/17)

Electric & Gas Corp.

(no par)
stockholders
of record July 17 at rate of one new share for each 10
shares held; rights to expire Aug. 2. Price—To be sup¬
plied by amendment. Underwriters — The First Boston
Corp., Lehman Brothers, Wertheim & Co., and Merrill
Lynch, Pierce, Fenner & Beane, all of New York. Pro¬
be offered

common

ceeds—For construction program.
North American

Avenue, Spokane, Wash.

ic Reading Tube Corp., Long Island City
I
June 5 filed $1,859,256 of 20-year 6% sinking fund de¬
bentures due July 1, 1971, and 66,402 shares of class B
stock (par 10 cents) being offered in exchange for 265,608
shares of outstanding class A cumulative and participat¬
ing stock (par $6.25) on the basis of $7 principal amount
share of class B stock

Acceptance Corp.

for each class

per share. Underwriter—Michael Investment Co.,
Providence, R. I. Proceeds—For working capital.
Offering—Postponed temporarily.

Statement effective June 29.

Northrop Aircraft, Inc.
I
June 6 filed 125,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Underwriters—
"William R. Staats Co., Inc., Los 'Angeles, Calif. Proceeds
—For working capital. Offering—Postponed indefinitely.

(par 25 cents). Price—$6 per share. Underwriters
—Ralph S. Young, Colorado Springs, Colo; J. A. Hogle
& Co., Salt Lake City, Utah; and Garrett-Bromfield &
Co., Denver, Colo. Proceeds—For working capital. Office
—937 U. S. National Bank Bldg., Denver, Colo.

—$10

Dealer-Manager

Inc.,

Ohio

Edison Co.

March 30 filed

150,000 shares of pfd. stock

(par $100).
Underwriters—To be determined by competitive bidding.
Probable bidders: Morgan Stanley & Co.; Lehman Bro¬
thers and Bear, Stearns & Co. (jointly); W. C. Langley
& Co.; Glore, Forgan & Co. and White, Weld & Co.

(jointly); The First Boston Corp. Proceeds — For con¬
program. Bids—Indefinitely postponed. Were

struction

to have been submitted up to 11:30 a.m. (EDT) on
Old Colony Finance Corp., Mt. Rainier,
June 1
(letter of notification) $250,000 of
ordinated

attached.
chase

with

debentures

one

stock

purchase

May 2.

sub¬

6%

warrants

The latter will entitle holders thereof- to pur¬
share of common stock at $4 per share for

of debentures owned. Price—At par (in de¬
nominations of $100, $500 and $1,000 each). Underwriter
Proceeds—For

working capital.
Rhode Island Avenue, Mt. Rainier, Md.
Owners

Discount

Corp., Elkhart,

Office—3219

Ind.

June 23 (letter of notification) $200,000 of 5V4% sinking
fund debentures, 1951 series (to be issued in denomina¬
tions of $1,000 and $500 each.)
rities

Corp.,

Underwriter—City Secu¬
Ind.■'< Proceeds—To finance

Indianapolis,

retail instalment contracts and make small loans.

Office

—416V2 So. Main Street, Elkhart, Ind.
{Pacific

Power &

Light Co.

(7/24)

June 29 filed 554,464 shares of common stock

(no par),

of which 250,000 shares are to be offered for subscription

by

common

stockholders

share for each

of record July

24

at

rate of

shares held, with rights to
expire about Aug. 20; and the remaining 304,464 shares
one new

to

are

be

Price—To

sold

for

the

seven

account

of

certain

stockholders.

be

supplied by amendment. Underwriters—
Lehman Brothers; Union Securities Corp.; Bear, Stearns
& Co.; and Dean Witter & Co. Proceeds—From sale of
stock to stockholders to be used to

Realty Co., Denver, Colo.
7 (letter of notification)

^ S & W Fine Foods, Inc.
84,950 shares of common stock (par $10).
Price—To be supplied by amendment.
Underwriter—
Blyth & Co., Inc., New York. Proceeds—For new con¬
struction and for working capital.
Scranton

21,752

(7/17)

Philadelphia, Pa.

shares

cumulative

of

finance, in part,

South State Uranium Mines Ltd.

(Canada)
April 9 filed by amendment 384,000 shares of capital
stock.
Price — At par ($1 per share).
UnderwriterOptionee—Robert Irwin Martin of Toronto.

Proceeds—

For

commissions, exploration and development expenses,
and working capital.
Southern

New

England Telephone Co.
400,000 shares of capital stock (par $25),
being offered for subscription to stockholders of record
June 27, 1951, in the ratio of 'one share for each eight
shares held; rights to expire July 20.
Price—At par.
June 8 filed

Underwriters

—

Proceeds

None.

—

To

advances

repay

from parent company,

con¬

Co., and for

new

American Telephone & Telegraph
construction. Statement effective June

26.

Southwestern Associated
June

June

general
26

corporate

purposes.

Telephone Co.

—

State¬

through lapse of time; amend¬

Peabody Coal Co.

Corp.

by competitive bidding. Probable bidders:, Halsey, Stu& Co. Inc.; Morgan Stanley & Co., White, Weld &

are

Co.
ton

Securities Corp. (jointly); First Bos¬
Ripley & Co., Inc., and Goldman,
(jointly). Proceeds—To purchase securities
United Gas Pipe Line Co., its subsidiary, which, in
arid Equitable

Corp.; Harriman

Sachs & Co.

turn, will use the funds to pay $7,000,000 of 3% promis¬
sory
notes owned by United Gas Corp., and the re¬
mainder for its construction program. Bids—To be re¬

(EDT) on July 24 at Two Rector
Statement effective June 21.

ceived up to 11:30 a.m.

Street, New York, N. Y.

Hoboken, N. J.

United States Steel Corp.,

May 21 filed 1,300,000 shares of common stock
"to be offered from time to time to certain

(no par)
key .em¬

ployees" under an incentive plan. Price—At market (to
net company about $54,275,000.
Proceeds—For general
corporate purposse. Statement effective June 11.
Urbana

Wine Co.,

Inc.

27,000 shares of capital

(letter of notification)

June 26

to be offered to stockholders of record
basis of nine new shares for each share
held; rights to expire on July 16.
Price—$10 per share.
Underwriter—None.
Proceeds—To retire bank loan and
for
working capital.
Office—Urbana, Hammondsport,
stock

(par $1)

Y.

N.

.

Mich.

shares of common stock.

Price

100,000

filed

7

June

Uranium Mining Co., Van Dyke,

Lake

Van

($1 per share). Underwriter—Titus Miller &
Co., Detroit, Mich.
Proceeds —For exploration and
drilling of mining claims.
Office—23660 Van Dyke
Avenue, Van Dyke, Mich. Offering—Expected soon. yY;

—At

par

^Washington Gas Light Co. (7/16)
f
June 20 filed $9,000,000 of refunding mortgage bonds
15, 1976. Underwriters—To be determined by
competitive bidding. Probable bidders Halsey,s Stuart
& Co. Inc.; Blyth & Co., Inc.; Smith, Barney & Co. and
White, Weld & Co. (jointly); W. C, Langley & Co. and
The First Boston Corp. (jointly); Equitable Securities

due July

Corp.; Alex. Brown & Sons. Proceeds—For general cor¬
porate purposes. Bids—To be received up to 11:30 a.m.
(EDT) on July 16 at company's office in Washington,

;
■
;■
V
Inc., Seattle, Wash.

C.

D.

Weisfield's,

j'tf":

•

May 21 (letter of notification) 5,244 shares of; capital
Price—$53 per share. Underwriter—None. Pro¬

stock.

capital. Office—Ranke Bldg.,>1511
Wash.
Y/YYY

ceeds—For working

Fifth Avenue, Seattle 1,

Oil Co., Inc., Las Vegas, Nev.

Western Osage

May 28 filed 1,000,000 shares of common stock
cents). Price—To be supplied by amendment.

<

(par 20
Under¬

drilling of exploratory
Withdrawal — A request was

Proceeds—For

writer—None.

well in Elko County, Nev.

withdraw registration statement.
Co.
June 12 (letter of notification) 10,000 shares of common
stock (par $10) to be offered for subscription by present
stockholders at rate of one share for each two shares held.
Price—$20 per share. Underwriter—None.
Proceeds—
For financing expansion program.
Office—1108 Lavaca
Street, Austin, Tex.

filed July 5 to

Western Reserve Life Insurance

Western States Copper Corp., Seattle, Wash.
11 (letter of notification) 119,980 shares of

;;

June

cumulative preferred
of common stock

6%

stock (par $1) and 124,980 shares
Price—Of preferred, at par

(no par).

plus accrued dividends (five annual dividends in ar¬
rears); and of common at a price to be determined later.
in their discretion may offer one share of

filed

shares of

17,500

160,000 shares of 514% prior preferred
Price—To be supplied by amendment.
Underwriter—A. C. Allyn & Co.,
Inc., Chicago, 111. Pro¬
ceeds—Ifor construction program. Offering—Indefinitely
postponed.
'

share.

peP?!-Cola Bottling Co. of Wash., D. C., Inc.

Underwriter—None.

III.
of common stock (par $2),
of stock options granted to
of the company under plan
April 18. Price—$11.70 per
Proceeds—To reduce bank

a

bonus for each purchase of one share

June

20

it

Power Co.

stated

was

able bidders: Halsey, Stuart

Drexel & Co.; Union

Sterling Engine Co., Buffalo, N. Y.
April 27 (letter of notification) an aggregate of not to
exceed 16,000 shares of common stock (par 10 cents).

curities

Philadelphia Life Insurance

Price—At market

Co.

June 28

To Addison F. Vare, the

(letter of notification) 15,000 shares of common
stock, of which 7,000 will be offered shareholders and
then to public, and 8,000 to officers
and employees. Price

Underwriters—John

C.

West, Philadel-

55}?'
:..i?ce^?s—For working capital
Office—111 No.
Broad




(about $2.25

per

—None, but Bache & Co. will act

and reserves.
St., Philadelphia 7, Pa.

Texas
June
.

28

Gas
filed

$100)." Price—To

be

share). Underwriter
broker. Proceeds—

selling stockholder.

Transmission

100,000

as

shares

supplied

Corp.
of

by

stock

amendment.

(par

Under¬

writer—Dillon, Read & Co. Inc., New York. Proceeds—
expansion program.

For

Corp.

Securities Corp. and Equitable Se¬

(jointly); Kidder, Peabody & Co.; The
Lehman Brothers. Proceeds—For ex¬

First Boston Corp.;

pansion program.
opened 6n Sept. 11.
American

Bids—Tentatively expected to
Registration—About Aug. 10.

President Lines, Ltd.

be
Y

>

Charles Sawyer, Secretary of Commerce, pro¬
posed the public sale to the highest bidder of the stock
of this company now held by the Department of Com¬
merce.
The proceeds would be placed in escrow until
the Courts decide whether the stock rightfully belongs
May 27,

(7/19)

preferred

& Co. Inc.; Morgan Stanley

Co., Inc.; Harriman Ripley & Co., Inc.;
Shields & Co. and Salomon Bros. & Hutzler (jointly);
& Co.; Blyth &

borrowings and for working capital.

as broker for over-the-counter
sales.
Proceeds—To
Bernard B. Schwartzman, the
selling stockholder.; '

contemplates sale

$15,000,000

stock

act

(9/11)

that company

first mortgage bonds due 1981. Under¬
writers—To be determined by competitive bidding. Prob¬

of

May 11

(letter of notification) 5,000 shares of common
(par 10 cents). Price—50 cents per share. Under¬
writer—None, but Ferris & Co., Washington, D. C., will

of

Prospective Offerings

I

Alabama

Spiegel, Inc., Chicago,
June 21 filed 78,250 shares
to be issuable upon exercise
officers and key executives
adopted by stockholders on

(par $25).

as

preferred stock.
Underwriter — None. Proceeds — For
milling equipment and other corporate purposes.
Office
—5905 Phinney Avenue, Seattle, Wash.

Postponed.

March 26 filed

--$11 per share.

■

(7/24)
YYYY
May 25 filed $50,000,000 of first mortgage and collateral
trust bonds due 1971. Underwriters—To be determined
United Gas

common

$5.50 cumulative pre¬
Price—To be supplied by amend¬
ment.
Underwriters—Paine, Webber, Jackson & Curtis
and Stone & Webster Securities Corp., both of New
York, and Rauscher, Pierce & Co., Inc., Dallas, Texas.
Proceeds—To retire $1,500,000 of bank loans and the
balance added to general corporate funds. Offering —
15,

ferred stock (no par).

ment necessary.

stock

Proceeds

Directors

for

and

filed

29

it Socony-Vacuum Oil Co., Inc.
June 28 filed interests in corporation's employees' sav¬
ings plan which will permit an employee to allot from
1% to 5% of his base pay, with the employer contribut¬
ing an additional amount equal to 50% of his allotment;
also 1,000,000 shares of capital stock (par $15) which
may be purchased in open market or from company at
market; aggregate contributions are not to exceed $35,000,000. Proceeds—Employees may direct that funds in
his account be invested in one or more of the following:
(a) Series E U. S. Government bonds; (b) capital stock of
corporation; or (c) common stock of any investment
company eligible for investment.

,

effective

Electric Co.,

preferred
stock (par $100). Price—To be supplied by amendment.
Underwriter—Kidder, Peabody & Co., New York. Pro¬

June

Milling Co., Las Vegas, Nev.;
Jan. 24 fned 20,0,000 shares of common stock. Price—At
Par ($1 per share). Underwriter—None. Proceeds—To
purchase machinery and equipment, to construct a mill
Mexico

shares of capital

June 22 filed

$26,450,000.

ment

2,000

stock

Pan American

in

Price—$17.50 per share. Underwriter—None.
To purchase securities of United Gas Pipe
Line Co., a subsidiary, which, in turn, will use the pro¬
ceeds to pay costs of new construction. Statement effec¬
tive June 21.
Y.;'YY Y^&'YlY
19.

July

June 23, 1951 on

June

struction of 100,000 kilowatt Yale hydro-electric
project
in Southwest Washington, which, it is estimated, will

cost

Securities

Aetna

—

ceeds—For construction program.

Md.

each $100

—None.

expire on Aug. 4.
Corp., New York.

A share held; offer to

* J'

"

United Gas Corp.

-

of debentures and one-fourth of a

March 20 (letter of notification) 15,000 shares of 60-cent
cumulative convertible preferred stock (par $5). Price

Bellville, Tex.

May 25 filed 1,065,330 shares of common stock (par $10)
being offered to common stockholders of record June 27,
1951, on basis of one new share for each ten shares held,
with an oversubscription privilege; rights to expire on

of

—None.

Co.,

Gas

Southeastern

Texas

May 16 (letter of notification) 19,434 shares of common
stock to be offered to common stockholders through
transferable warrants. Price—At par ($5 per share).
Underwriter—None. Proceeds—For working capital.

■

Pittsburgh Steel Co.
June 26 filed 12,569 shares

May 22 (letter of notification) 20,000 shares of common
stock (par $5).
Price — $15 per share. Underwriter —
None.
Proceeds—For general corporate purposes.
Of¬

New York State

June 26 filed
to

Suburban Transportation Co.
notification) $300,000 of 4%% con¬
vertible debentures of 1967 (each $100 principal amount
convertible into three shares of common stock).
Price
Philadelphia

31

Continued from page

trx

nnvprrsmpnt

or

tn

the* Dollar

interests.

.Volume 174

Number 5028

...

.

The Commercial and Financial Chronicle

(181)
Alaska

April

25

Telephone Co.

it

announced

was

1981

company

may

file

soon

a :

letter of notification with the SEC covering $300,000 of
6% convertible bonds. Price—At par (in units of $100

each). Underwriter—Tellier & Co., New York. Proceeds
—-For new equipment and for expansion..
j
„

.

•

Associated Telephone Co., Ltd.

July 3 it
sale

was

(Calif.)

announced that tentative plans call for the
year of $8,000,000 additional first mort¬
Underwriter — To be determined by com¬

this

later

gage bonds.

petitive

bidding. Probable bidders for bonds: Halsey,
Stuart & Co. Inc.; Paine, Webber, Jackson & Curtis and
Stone & Webster Securities Corp.
(jointly);

Kuhn, Loeb
& Co. and Salomon Bros. & Hutzler
(jointly); White,
Weld & Co., Kidder, Peabody & Co. and
Shuman, Agnew
& Co. (jointly);
Harris, Hall & Co., Inc. and Equitable
Securities Corp. (jointly). Proceeds — For construction

^

program.
:

1

>

<

,

i" Beaunit Mills, Inc.
June 26 stockholders approved issuance and sale of
100,000 shares of $5 cumulative
preferred stock (no par).
Underwriters—Probably White, Weld & Co..and Kidder,
Peabody & Co. Proceeds—From sale of stock, together
with $15,000,000 from bank loans and

$3,000,000

other

sources,

to

be used

to

rayon tire yarn plant at Coosa

ing capital.

finance

of

Bell Aircraft Corp.
May 28 stockholders approved a proposal to borrow
$2,500,000 on bonds to mature serially. The proceeds will
a

$3,000,000 helicop¬

British Columbia (Province
June 23 it was reported that

of), Canada
early registration is

ex¬

pected of

an issue of $35,000,000 bonds to mature
serially
to and including 1976, Probable Underwriters—The
First Boston Corp. and A. E. Ames &
Co., Ltd. Proceeds

up

—For

refunding and for

new

construction.

Canadian National

Ry.
May 28 it was stated company has about $48,000,000
of 4%% guaranteed
mortgage gold bonds coming due
Sept. 1, 1951, in U. S. funds.

on

Refunding likely to be

under the auspices of the Canadian
Government.

Carolina Natural Gas
Corp., Charlotte, N. C.
a fourth amended
application was filed with the
SEC for authority to build a natural

Feb. 20
to

gas pipeline system
certain areas in North and South Carolina.
Esti¬
cost of the proposed facilities is

$3,595,295, to be
mortgage bonds and the
issuance of junior securities. Underwriters
may include
R. S. Dickson & Co., Charlotte, N. C.
financed

by the sale

Central

June

29

RR.

it

Co.

of

of

first

Pennsylvania

was

reported company expects to be in the
market late in July, with an issue of
$2,475,000 equip?
ment trust certificates. Probable
bidders: Halsey, Stuart
& Co. Inc.; Salomon Bros. & Hutzler.

Chicago District Pipeline Co.
May 22 it was announced that this company (a sub¬
sidiary of Peoples Gas Light & Coke Co.) may find it
necessary to construct a 30-inch pipeline from
Volo,
111., to near Mt. Prospect, 111., at a cost estimated at
approximately $1,650,000.
The amount and character
of the financing are not now
known.
Bond financing in
March, 1950, was placed privately.v ru i
;
:
,

Chicago & Western Indiana RR.
June

2

it

working capital.

;;

>

.

Delaware River Development
Corp.
June

20

FPC

decided

to

issue

a

early in 1952 with

to
a

be

in

new

the

issue

due

by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Lee
Higginson Corp.; Harris, Hall & Co. (Inc.); Drexel &
Co.; Kuhn, Loeb & Co. and Salomon Bros. & Hutzler

(jointly); Harriman Ripley & Co., Inc.; First Boston
Corp.; Lehman Brothers; Paine, Webber, Jackson &
/Curtis; Kidder, Peabody & Co.
Proceeds—To refund
$49,988,00Q of 4% non-callable consolidated first mort¬
gage bonds due July 1, 1952, and to redeem
$1.3,747,000
first and
refunding mortgage 4*4% bonds, series D, due
Sept. 1, 1962.
The remainder will go towards
property

improvements, etc.

one-year

Delaware River

in New Jersey, Pennsylvania and New
York, estimated to cost $47,000,000. Early last year, it was
announced that the proposed
project would be financed
through the issuance of $28,200,000 of bonds,
$14,100,000
of preferred
stock, $4,700,000 of convertible common
stock and 100,000 shares
of.no par value common stock.

Denver & Rio

Grande Western

12, Wilson McCarthy, President, stated that due
prevailing market conditions, the company has post¬
poned to an undetermined date the taking of bids for
to

the

purchase of $40,000,000 first mortgage bonds to be
May 1, 1951, and to mature on May 1, 1981. Un¬
derwriters—To be determined by competitive
dated

bidding.

bidders:

Halsey,

Stuart

&

Co.

Inc.;

Morgan

Stanley & Co.; Kuhn, Loeb & Co. and Bear, Stearns
& Co. (jointly).
Proceeds—Together with treasury
funds, to redeem on June 1, 1951, $35,062,200 oustanding
first mortgage 3%-4%
Denver

&

Salt

Lake

both due Jan. 1,

bonds, series A, and $8,666,900 oi
mortgage 3%-4% bonds,

income

1993.

Derby Gas & Electric Corp.
June 22 corporation applied to SEC for
authority to issue
and sell $900,000 of debentures to mature
July 1, 1957
(to be placed privately with an institution) and ap¬
proximately 12,500 additional shares of common stock

reported that the holdings of the Union
Securities Corp. group of stock of Colorado
Interstate

(531,250 shares) will probably be sold
publicly in August

or

September.

| Commonwealth Edison Co.
May 22 Charles Y. Freeman, Chairman, announced that

the

company's scheduled construction program for the
1951-54 period calls for the
expenditure of about $450,000,000, of which it is estimated that $200,000,000 will
be provided out of cash resources at the
end of 1950.
This

means

that additional capital of about

$250,000,000

Will be required
^through 1954. Neither the timing nor
the nature of this new
financing have yet been deter¬
mined.

Probable bidders for bonds

or

debentures:

Hal¬

Stuart & Co. Inc.; The First Boston Corp.; Glore,
Forgan & Co.; Morgan Stanley & Co.

tion program.
Dow

Chemical

Co.

April 5, Leland I. Doan, President, stated that the com¬
pany plans to spend $65,000,000 on plant expansion in
the current fiscal year ending May 31, 1951, and expects
to spend somewhat more in the following fiscal year,
He added, however, that no decision has been reached
on

any

possible financing in this connection. Traditional
Smith, Barney & Co., New York.

underwriter:

Fort Worth & Denver City Ry.

May 17 stockholders of Colorado & Southern Ry. ap¬
proved a program providing for simplification of that
company's corporate structure and for the refunding oi
the indebtedness of the company and its subsidiaries.
This program calls for a new issue of $20,000,000 first
mortgage bonds due 1981 of Fort Worth & Denver City
Ry. and the transfer to the latter of stock and other obli¬
gations of seven Texas companies. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Salo¬
mon Bros. & Hutzler; The First Boston Corp.

Ebertsadt & Co. Inc.

Proceeds—To

re¬

indebtedness of subsidiary, and for working capital.

pay

Meeting

—

Stockholders will vote

on

financing

program

Aug. 10.

on

April 23 it was announced company expects shortly to
a
registration statement covering 60,000 shares of
$50 par convertible preferred stock and to withdraw
statement covering 159,142 shares of class B common
stock (par $1); see a preceding column.
Proceeds—For
working capital and general corporate purposes.
file

Products, Inc., Phila, Pa.
(in addition to sale
of 5,000 shares of common stock filed with SEC) proposes
to issue and sell another issue of approximately 29.651
shares of common stock (par $1) later this year.
Office
—2636 North Hutchinson Street, Philadelphia 33, Pa.
was

announced company

June

6
company
reported
considering
issuance of
$15,000,000 of additional first mortgage bonds. Will prob¬
ably be placed privately. If competitive, probable bidders
may include Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.,
Lazard Freres and The First Boston Corp. (jointly);
Equitable Securities Corp.; Kidder, Peabody & Co.;
Salomon Bros. & Hutzler and Union Securities Corp.
(jointly); Harriman Ripley & Co., Inc. Proceeds will be
used for additions and improvements to the company's
properties.
' vj
V

Illinois Bell Telephone Co.
June

27

W.

V.

Kahler, President, announced that this
company (approximately 99.31%
owned by American
Telephone & Telegraph Co.) plans issuance and sale,
sometime before the end of, the year, of 682,454 addi¬
tional shares of capital stock to its stockholders. Under¬
writer—None. Proceeds—To repay short-term loans and

Consolidated Edison Co. of New York, Inc.
March 23 company applied to New York
P. S. Commis¬
sion for authority to issue and sell
$25,000,000 of first

Dec.




May 1,

C.

Langley & Co. (jointly); Smith, Barney & Co.; The
Boston Corp.; White Weld & Co., Shields & Co.
Central Republic Co. (jointly); Harriman
Ripley;&
Co., Inc.; Salomon Bros. & Hutzler and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Union Securities
Corp. and Stern Bros. & Co. (jointly). Probable bidders
and

for

common stock; Lehman
Brothers; Glore, Forgan &
Co.; Harriman Ripley
Co., Inc.
Probable bidders for
bonds:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.;
White, Weld & Co.; Shields & Co/ and Central Republic
Co. (jointly); Glore, Forgan & Co.; Smith,
Barney & Co.;
Kuhn, Loeb & Co.; Union Securities Corp. and Salomon
Bros. & Hutzler (jointly); Lehman Brothers and
Bear,
Stearns.& Co. (jointly); The First Boston Corp • Equit¬
able Securities Corp.; Harriman Ripley & Co., Inc.

Kansas Gas & Electric Co.

May 24 Murray F. Gill, Chairman of the board,
nounced that the company's present construction
gram

calls for expenditures of

1951.

To finance

an¬
pro¬

than $8,000,000 in

more

part of the expansion program, com¬

new

construction.

Iowa Power &

Light Co.

19 it was reported company expects to issue addi¬
tional securities in 1951 to finance its construction pro¬
gram

which is

$7,500,000.

Under¬
bidding.
Halsey, Stuart & Co, Inc.; Union
Securities Corp.; Merrill Lynch, Pierce, Fenner & Beane
and Kidder, Peabody & Co. (jointly). There is a pos¬
sibility that company may also decide to refund its
outstanding $16,000,000 first mortgage 3%% bonds due
1970 (held by a group of insurance companies) and
$5,000,000 first mortgage 3Vs% bonds due 1978.
bidders:

Long Island Lighting Co.
was reported that the company's next step
its financing program may include the sale of
ap¬
proximately $15,000,000 of preferred stock. Probable
bidders may include Blyth & Co., Inc. ;
McKesson & Bobbins, Inc.

June 25 it
in

May 24 it was announced stockholders will vote Oct. 23
a proposal to increase authorized common stock
by
500,000 shares to 2,500,000 shares in order to provide for
a probable
offering of additional stock to common stock¬

on

holders.

Probable underwriter:

Goldman, Sachs & Co^

New York. Proceeds will be added to. working
Mead Corp.
June 8 it was announced

papitaL

,

that

construction

$21,000,000 kraft container board mill

near

of

a.

new

Rome, Ga.,

is scheduled to be under way at an
early date. Tradi¬
tional underwriters: Drexel & Co. and Harriman
Ripley
&

Co., Inc.

•

Meridian & Bigbee River Ry.

(7/20)

Bids will be received up to 10 a.m. (EDT) on July 20 by
Leo

Nielson, Secretary of Reconstruction Finance Corpo¬
ration, 811 Vermont Ave., N. W., Washington 25, D. C.,
for the purchase from the RFC of

Glenmore Distilleries Co.

for

refunding mortgage bonds, series H, due

•

Probable

sey,

and

nance
its construction program for 1951-1952.
Stock¬
holders will vote July 11 on increasing the authorized
preferred stock from 200,000 to 350,000 shares and the
authorized indebtedness by $12,000,000.
Probable bid¬
ders for preferred stock:
Glore, Forgan & Co. and W.

pany may sell $5,000,000 of first mortgage bonds.
writers—To
be
determined
by
competitive

(latter to be offered to public pursuant to a negotiated
Probable Underwriter—Allen & Co., New
Proceeds—To be applied toward 1951 construc¬

Idaho Power Co.

pansion program.

stock from 15,000 shares to

i

York.

Columbus & Southern Ohio Electric Co.

May 16 J. B. Poston, President, announced that com¬
pany plans an early offering of
$10,000,000 first mort¬
gage; bonds.
Underwriters—Last issue of bonds were
placed privately on July 1, 1948 through
Dillon, Read &
Co. Inc., New York. If
competitive, probable bidders
may include Halsey, Stuart & Co. Proceeds—For ex¬

$100.

transaction).

June 7, it

was

par

First

RR.

April

Probable

but unissued preferred

Kansas City Power & Light Co.
June 12, Harry B. Munsell,
President; announced com¬
pany hopes to issue and sell within the next two
years
$12,000,000 of bonds, $10,000,000 of additional preferred
stock and $8,COO,000 of additional common stock to fi¬

preliminary

Hahn Aviation

Colorado Interstate Gas Co.
June 18 it

ized

30,000 shares,

permit to the corporation for investigation of the
pro¬
posed development of a hydroelectric project on the

Underwriter—F.

expects

28 it was announced stockholders have approved
proposals to increase the authorized indebtedness of the
company to $3,500,000 from $1,500,000, and the author¬

(N. J.)

determined

company

May

rJf-//•

approximately $70,000,000 of first mortgage bonds,
1981, of which about $65,000,000 will be sold ini¬
tially. Price—Not less than par. Underwriter—To be

reported

I-T-E Circuit Breaker Co.

Offering—Postponed.

Consumers Public Service Co. of
Brookfield, Mo.
June 8, the Missouri P. S. Commission
authorized com¬
pany to issue and sell 1,500 shares of 5% preferred stock
(par $50). Proceeds—To repay $66,232 of notes and for

• Fuller
(D. B.) & Co., Inc.
July 9, Daniel B. Fuller, President, announced that com¬
pany will soon file a registration statement with the SEC
covering 120,000 shares of 6% cumulative convertible
preferred stock (par $15). Price — To be named later.

was

market late this year or
of

preferred stock.

—

gage bonds due 1967.

serve

mated

rities

art & Co. Inc.; Morgan
Stanley & Co.; The First Boston
Corp.; Merrill Lynch, Pierce, Fenner & Beane and White,
Weld
&
Co. (jointly).
Proceeds
To redeem
a
like
amount of Westchester
Lighting Co. 3^2% general mort¬

a

Pines, Ala., and for work¬

conditions at the time. Probable bidders:
Halsey, Stuart
& Co. (for
bonds); W. C. Langley & Co., Union Secu¬
Corp. and Glore, Forgan & Co. (jointly), for
bonds or stock. The stockholders are to vote
July 17
on issuance of the
remaining 50,000 shares of authorized

the SEC

from

construction

Offering—May be made privately.

be used to finance construction of
ter plant near Fort Worth, Texas.

;

(in addition to $40,000,000 series G bonds filed with
on March 30).
Underwriters—To be determined
by competitive bidding. Probable bidders: Halsey, Stu¬

33

expected

Form

of

to cost between

$6,500,000 to

financing will depend

on

market

$50,000 first mortgage
4% bonds due Jan. 1, 1968; $500,000 of income mortgage
4% bonds due Jan. 1, 1998; and 7,846.55 shares of com¬
stock

mon

of

$784,655).

no

par

value

(having

a

stated

value of

(»

,

Michigan-Wisconsin Pipe Line Co.
May 29, SEC authorized extension for one year, .or
until July 1, 1952, of maturity of
$20,000,000 bank loans
and

the

stock

issuance

to

the

and

sale

American

of 30,000

Natural

shares of

common

Gas

Co., parent, for
$3,000,000, to provide an equity, base for contemplated
future permanent financing which may include issuance
and sale of $12,000,000 of first mortgage
bond§.
Pre¬
vious debt financing was placed privately.
If competi¬
tive, bidders may include: Halsey, Stuart & Co. Inc.;
The First Boston Corp.; Harriman
Ripley & Co., Inc.;
Glore, Forgan & Co.
National

Distillers

Products

Corp.

June 6 stockholders voted to create

a new issue of 500,000 shares of preferred stock (par $100) and to increase
the authorized common stock from 10,000,000 shares, no

par

value, to 15,000,000 shares,

par

$5.

It

was

also voted

to eliminate the then authorized 150,000 shares of pre¬
ferred stock (par $100), none Of which had been issued.
Management contemplates new financing in 1951 to pro¬

vide for $20,000,000 of plant improvements, repayment
of $17,000,000 of short-term bank loans, and for addi¬

tional

working capital. Underwriters—Glore,
Harriman, Ripley & Co. Inc.

Forgan

& Co. and

Niagara Mohawk Power Corp.
June 8, company applied to FPC for a license for a pro¬

posed

new

project estimated to cost $22,611,000.

On Jan.

26, company bad announced that it probably would sell
late this year or early 1952 about $15,000,000 of addi¬
tional common stock to finance part of its $150,000,000
construction program scheduled for 1951, 1952 and 1953.
bidders:
Merrill Lynch, Pierce, Fenner '&

Probable

Continued

on

page

34

.

34

The Commercial and Financial Chronicle

(182)

•

Continued from page

33

Chemical Corp.,

III.

Chicago,

stalments.

*

Salomon

.

expects to offer In
July 74,500 shares of common stock (par $1). PriceTo be determined later.
Underwriter—Loewi & Co.,
Milwaukee, Wis. Proceeds—For working capital.

ceeds Will be used for construction program.

announced

plans issuance and

it

company

& Hutzler.

Bros.

mon

bidding.
Probable
bidders:
Halsey,
Stuart &
Co. Inc.; Blair, Rollins & Co. Inc. and Carl M. Loeb,
Rhoadek & Co. (jointly); Lehman Brothers; W. C. Langley & Co. and The First Boston Corp. (jointly); Union
Securities Corp.; Kidder, Peabody & Co.; Blyth and Co.,

/'

,

8, the company
Commission

was

issue

to

and

by the Missouri

of 3*/4% sinking fund debentures, due 1971,
to issue 60,000 additional shares of common stock
key employees under a stock option plan. Under¬
writers—For debentures, to be determined by competi¬
tive bidding.
Probable bidders may include Kidder,

&

Co.

and

Southern

Union

Gas

writer—Blair, Rollins

&

Offering—Of stock expected about

Public Service Co. of Indiana, Inc.
was reported that company may do some per¬
financing "when market conditions permit."
Earlier this year arrangements were made with eight
banks for borrowing up to $40,000,000 on promissory
notes bearing interest at 21/2%. Of this total, it is planned
to use $13,000,000 in 1951, $14,000,000 in 1952 and $13,-

June 25 it
manent

Texas

i

Illinois

Natural

of

of

its pipeline facilities.

fered
bonds

for

the

by
privately.

sold

Texas & Pacific

Ry.

construction

carry

Indiana, Ohio and Michigan.
The
planned to build 1,500 miles of line.

stockholders

program, and that further

financing will be required in
Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler; Stone & Webster Securi¬
ties Corp.; Union Securities Corp.; White, Weld & Co.
Probable bidders for bonds:

Washington Water Power Co.
May 28 it was announced that company contemplates
issuance and sale late in 1951 or early in 1952 of mort¬

and

gage

bonds

bank

(7/12)

loans

"to

maximum

extent

be

possible

and

the

all retired."
program for the com¬

largely

At that

to

or

On June 15,

mature

in

time, it will formulate a
plete refunding of all of the bank loans and to provide
for

the

of the outstanding preferred stock.
authority was received from SEC to borrow
up to $26,000,000 from banks.
Probable bidders: (1)
For stock or bonds: Blyth & Co., Inc.; Smith, Barney>&

10

equal annual instalments on Aug. 1,
1952 to 1961, inclusive. Probable bidders:
Halsey, Stuart

& Co. Inc.; Salomon Bros. & Hutzler.

Co. and

Texas

Rochester Gas & Electric Corp.

May 21 it

com¬

the

at that time will

Bids will be received up to noon (EDT) on July 12 for
the purchase from the company of $1,650,000 equipment
trust certificates, series L, to be dated Aug. 1, 1951, and

curred in connection with construction program.

had

company

Virginia Electric & Power Co.
r
May 1 the company announced that it is contemplated
that there will be additional financing to an amount ap¬
proximating $20,000,000, incident to the 1951 construction

Pipeline Co.

common

of a $144,500,000 pipeline project to
natural gas from Texas and Louisiana to markets

in

new

Late last year, stock was of¬

subscription

were

18 and bonds

Valley Gas Pipe Line Co., Inc., Houston, Tex.
May 9 FPC dismissed application of company proposing

May 22 it was announced that company probably some¬
time during 1952 will issue and sell $34,500,000 in bonds
and $11,500,000 in equity securities to finance expansion

000,000 in 1953. Underwriters—May be determined by
competitive bidding. Probable bidders for bonds: Hal¬
sey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; Union Securi¬
ties Corp. and Salomon Bros. & Hutzler (jointly); Blyth
& Co., Inc.; The First Boston Corp.; Glore, Forgan &
Co.; Merrill Lynch, Pierce, Fenner & Beane; Kidder,
Peabody & Co. and White, Weld & Co. (jointly); Harriman Ripley & Co. Inc.
Probable Bidders for preferred
stock: Blyth & Co., Inc.; Glore, Forgan & Co.; Harriman
Ripley & Co. Inc. Proceeds—To retire bank loans in¬

Sept.

$12,000,000. Registration—Expected early in August.

1952.

Gas

stock

provide additional construction funds. May 18 company
sought SEC approval to borrow from banks not in excess

•
Superior Water, Light & Power Co.
July 7 it was reported that company expects to sell $1,000,000 additional bonds this month or next and another
bond issue for a like amount in January. May be placed
privately.

stock were

common

pro¬

late in October. Proceeds—To repay bank loans and to

construction.

subscribed for by common stockholders in 1933.

during 1951

ly); Union Securities Corp., and Smith, Barney & Co.
(jointly); and (2) for stock: Blyth & Co., Inc.; W. C.
Langley & Co., and Glore, Forgan & Co. (jointly); Union
Securities Corp., and Smith, Barney & Co.
(jointly);
Lehman Bros, and Bear, Stearns & Co. (jointly); Kidder,
Peabody & Co., and Merrill Lynch, Pierce Fenner &
Beane (jointly). However, common stock offering may
be made directly by company, without
underwriting.

(8/31)

Proceeds—For

company

bidding. Probable bid¬
(1) For bonds: Halsey, Stuart & Co. Inc.; Kidder,
Peabody & Co.; Lehman Brothers, and Bear, Stearns &
Co.
(jointly); White, Weld & Co.; Salomon Bros. &
Hutzler; First Boston Corp., and Blyth & Co., Inc. (joint¬

Traditional Under¬

Co., Inc.

V

Light Co.

announced

was

ders

Co.

bonds within the next 60 to 90 days.

it

To be determined by competitive

a

to file

Power &
8

about $12,000,000 of first mortgage bonds. Underwriters—

May 23 C. H. Zachry, President, announced that com¬
pany plans the issuance of $5,000,000 new first mortgage

These shares are now without par value. Com¬
pany now has a $25,000,000 expansion program, the fi¬
nancing of which will be accomplished through a later
sale of securities to the public. The present outstanding

authorized

Rauscher, Pierce

to issue and sell 200,000 shares of

poses

announced company expects about July
registration statement with the SEC cover¬
ing approximately $12,000,000 of first mortgage bonds,
due 1981 (probably as 3V4S).
Underwriters — The last
bond financing was handled by Blyth & Co., Harriman
Ripley & Co. Inc. and Dean Witter & Co. in April, 1948.
Proceeds—To be used for expansion of gas transmission
and distribution system.
Offering—Expected Aug. 31.

$100.

increase

Corp.,

common

Probable underwriters:

six

in

Utah
March

was

25

Pennsylvania Water & Power Co.
May 28 John A. Walls, President, announced stock¬
holders will vote July 25 on approving changes in the
company's charter provisions which would permit the
issuance of the remaining 78,507 preferred shares as
cumulative series preferred stock with a par value of

voted to

Boston

plans

company

non-subsidiary companies, viz: Central
Co., 35,340 shares; Consumers Power Co.,
52,586 shares; Delaware Power & Light Co., 37,355
shares; Niagara Mohawk Power Corp., 145,000 shares;
Public Service Electric & Gas Co., 36,801 preference
common shares and 4,861 common
shares; and Delaware
Coach Co., a $1,000,000 note.
•

indicated that it would soon be in

Southern Counties Gas Co. of California

construction program.

stockholders

♦

Illinois Light

due before the end of the year.

are

company

July 2 it

Peabody & Co.; Merrill Lynch, Pierce, Fenner & Beane
and Halsey, Stuart & Co. Inc. (jointly).
Proceeds—For

preferred

First

interest

Inc.; White, Weld & Co.; Lehman Brothers; Merrill
Lynch, Pierce, Fenner & Beane and Harris, Hall & Co.
(Inc.) (jointly).
Offering—Expected in the Fall.

sell to the public $20,-

cumulative

/; ;]/.•>

■

United Gas Improvement Co.
/
June 18, the SEC directed the company to dispose of its

the market with $18,000,000 of senior securities. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co.,

and

$5

H.

E.

Dallas Union Securities Co.

Southern California Gas Co.

to

of

The

Earl

April 4, the

000,000

shares

and

Utilities Co.

May 29, it was reported that
stock financing late this year.

154,231.8 shares of South Jersey common stock (par
$5). These holdings will probably be disposed of to a
small group of investors.

Panhandle Eastern Pipe Line
P.

Texas

or

Inc., White, Weld & Co. and Harris, Hall & Co., Inc.
(jointly). (For registration of 554,464 shares of common
stock, see a preceding column).
June

Co.

&

Proceeds—To be used to finance

construction costs.

South Jersey Gas Co.
June 15, SEC announced approval of a plan filed by The
United Corp., which, in part, provides for the sale by
the latter of its entire interest, amounting to 28.3%,

tive

Co.
authorized

24

bank notes which

of mortgage bonds in the early part
Underwriters — To be determined by competi¬

was

of $15,000,000

June 6

Stuart & Co. Inc.;

Jersey Gas Co.
Smith, President, announced company
a bond issue of more than $8,000,000 by fall of
this year.
Underwriters—May be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Lehman Brothers; Blyth &, Co., Inc. Proceeds—
To refund the presently outstanding $4JU)QJ)00 of 4%%
first mortgage bonds and repay outstanding short-term
April
plans

it Pacific Power & Light Co.
sale

Rhoades

South

haps more, which it expects to raise some months hence
through the sale of new securities. Probable bidders for
bonds: Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.;
The First Boston Corp.; Glore, Forgan & Co., White,
Weld & Co. and Union Securities Corp. (jointly). Pro¬

June 29

*

(jointly); White, Weld & Co.; Equitable Securities Corp.;
Ripley & Co., Inc.; Lehman Brothers; Salo¬

Georgia Natural Gas Co., Atlanta, Ga.
May 24 the FPC dismissed the application of company
to construct 527 miles of natural gas pipe line to supply
markets in Georgia and Florida, the estimated cost of
which was between $10,500,000 and $12,080,000.

Ohio Power Co.

21,493

Loeb,

Thursday, July 12, 1951

.

Harriman

South

May 15 it was stated that this company, a subsidiary of
American Gas & Electric Co., will need $36,000,000, per¬

S.

Bros.

M.

it was announced company

June 18,

of 1952]

bidders: Halsey,
& Hutzler.

Probable

Carl

.

Rollins & Sons (jointly); Union Securities Corp.; Drexel
& Co. and Hemphill, Noyes,
Graham, Parsons & Cb.

by the company at its office, 120
Broadway, New York, N. Y., up to noon (EDT) on July
23 for the purchase from it of $5,085,000 equipment trust
certificates, series I, to mature in 15 equal annual in¬

(jointly); Morgan Stanley & Co.
Nuclear Instrument &

(jointly);

(7/23)

Bids will be received

Peabody & Co. and White, Weld & Co.

Beane; Kidder,

St. Louis-San Francisco

.

Powpr & Light Co.

was

retirement

White, Weld & Co. (jointly,); W. C. Langley.&
(jointly); (2) For bonds

Co. and The First Boston Corp.

stated company may offer either $7,000,000

mon
stock from
1,250,000 to 1,750,000 shares.
It is
planned to offer later this year about 150,000 shares for
subscription by common stockholders on a one-for-seven

basis

only: Halsey, Stuart & Co. Inc.

Co. Inc.; The First Boston Corp.; Blyth & Co., Inc.;
Kidder, Peabody & Co. and Smith, Barney & Co. (joint¬
ly); W. C. Langley & Co. and Glore, Forgan & Co.

>

or

and

reduction

$14,000,000 of first mortgage bonds late in 1951 or
early 1952. Underwriters—To be determined by com¬
petitive bidding. Probable bidders:
Halsey, Stuart &

50,000 shares to employees under a payroll
plan. Underwriter — The First Boston Corp.
expansion program.

Proceeds—For

pins

among

investment

have not been
It

develops

months
as

that

in

recent

buyers, who stand
the major outlet for new offer¬

ings,

have

orders for

been

putting

ready

bonds

particular
complete

what
or

take

down

the

provided

for

the

operation

was

rated

a

cessful

the
new

sence

it

suc¬

was

small

ing

a

back up.

success.

But that

was

the

with the

case

Basically
by
reason
of
the
change
in
conditions
brought
about by the Korean War and the

But they also maintained the
right to "cancel out" if the deal

Federal Reserve's shift to

who,

Co.'s $10,000,000 of new

loves

mortgage
bonds,
due
in
1981,
brought out a total of eight bids,
three naming a 3%% coupon and

a

firm¬

money policy as an anti-infla¬
tion measure, the so-called "bu¬
er

proved

a

slow

mover.

admittedly, have an ax to
grind,
concede
that
everybody
a

winner. Yet it is their

reaucrats," portfolio managers for
large institutions, have won their

tention

fight for

of the deals involved

more

liberal

yields

on

corporate securities.
But their tactics in
ders

for.

new

issues

or¬

have

not

tended to win them many plaudits
among the underwriting frater¬

nity. On the contrary

that

orders had

if

some

the question of whether such

raise
ma¬

these

been

been successful

placing

Bankers

firm

con¬

contingent

bids,

many

would have

week.

a

consequence.

So, they argue, the wise

by

brought

to

Minnesota

this

market

Power

&

Light
refunding

the other five fixing a 3%% rate
as the basis for their tenders.
The

as

for

winning

the

lower

group
interest

bid. 101.019
rate

while

their extreme caution, frequently

the runners-up bid 100.389 making
for an indicated spread of $6.30

defeated their

a

men

bond.

bids next week

shelves

the

of

Reports have it that there were

suggestions for a consolidation .'of
the commercial banking and qn~

than dust in the ab-

inventories

of

unless something

happens at the last moment, s

hold

underwriters

and

more

Bare

corporate debt issues

,

.

at

the

derwriting
that these

moment.

banking
were

but

groups

sidetracked. This

It's quite a while since this condition

has

prevailed and

dustry likes
having little
to
sell, the
promote

it,
or

bit

a

though

nothing in stock

situation
more

tends

to

venturesome

spirit in quest of new issues.
'

preferred

much

the

stock

same

re-

market

virtually

...

_

rf

condition

°ate having

cleared

away

.

'00mlnff» the exemption feature
.°f these and other municipal
issues is apparently helping dealin the field to bale themselves

0ut of their

large inventories.

v

offerings
holds

now little more than half of the

tin with
to

]!SUPs

®
V.f
® *
'
Meanwhile with higher taxes

ers

Except for scattered lots of
cent

b*

the inperhaps

in

been

S00'000 rep0rted in ear*

their

entirety.

With Merrill Lynch Co.

Girding for the Big One

(Special to The Financial Chronicle)

101.749

There

point is that institutional buyers,

to yield 3.53%, demand was slow,

that two

competing syndicates will

Wofford, Jr. is with Merrill Lynch,

with

with the

be in the field for the $160,000,000

Pierce, Fenner & Beane, Blount

security

own

as

purpose.

their first

Their

con¬

neuvers, by the supposedly king¬ sideration, should be able to con¬




issues

Are

.

a

nettling to find the latest
utility offerings show¬
renewed tendency to

two

as

concerned

are

little

recent

flotations

So far

dealers

Down

several

(J.), Inc.
June 6, it was reported company plans issuance apd
sale of 20,000 shares of preferred stock (par $50) to
residents of Texas only. Underwriter—Moroney, Beissner & Co., Houston, Texas. Offering—Expected soon.1

Shelves

or

be

few basis points in yield.

a

Slowing

trifle

merits,

swayed by
other fellow might do,

the

by

its

on

not

and

After

a

to

spoken

deal

a

through

given issue on
"contingent" basis. That is, they

stood

sider

quality,

these

their
a

buyers,

bit amateurish.

a

Weingarfen

On

reoffering at

lag ascribed to the

usually wide "cover."

un¬

is

still

every

indication

PENSACOLA,

public housing issues due up for Building.

Fla.—George

T.

^

Number 5028

Volume 174

The Commercial and Financial Chronicle

...

(183)
Continued

from

7

page

How Federal Reserve Can Contract Credit

Joins First California
(Special

Alaska—Land o!
natives).

This is

the largest gain

1940 and is

Over

77.4% increase

a

percentagewise of any area under
the American flag. For those who
claim that Alaska has too small

population for statehood

a

could

swer

found in

be

an an¬

the fol-

lowing list showing the population
at the dates of admission as States:

Nevada

62,549

Nebraska

,

52,288

Wyoming

*

6,857

Oregon

-

122,906

Montana

mists'

in.

There

is

record

no

of

a

98.8%; Fairbanks, 98.9%; Anchor¬
£-3.9%. Shortly after state¬
hood Alaska may be expected to
ask for bids on its first bond issue,
is

it

initial

quite possible that this

offering could establish

record

oversubscription
obligations. For its

state

among

a

for

large natural

dollar

resources per

The annual cost of present Ter¬
ritorial government in Alaska is
about $9,000,000. The cost of state¬
hood would exceed that amount

doubtless for its exceptionally at¬
tractive yield, t h i s new issue

$4,200,000 to $9,500,000,

institutional and private investors.

by

from

according

However,
sary

to estimates of advo¬
opponents.
Estimated
gross annual production for Alaska
as $140,900,000.
Federal military
and non - military expenditures
$187,400,000, tour i s t industry,
transportation and trade $45,000,000, or a total of $373,300,000, This
figure should yield a tax total of
$20,500,000, approximately a 5.7%
burden. If the present 2 cents per
gallon

fuel

motor

the

and

tax

rates

increased

it is not really neces¬
an as yet unde¬

to wait for

termined bond issue
of Alaska.

There

the State

on

available

are

on

the market today certain obliga¬
tions of municipalities in Alaska

deferred

over

of uncollected cash

excess

"The
ties

Federal

Reserve

achieve

can

authori¬

contraction

a

credit extended to member

under existing
without need

in

banks

times.

The float of

of

as

June

20,

self

while

powers, by re¬

way

to restrict

ducing what
the

Reserve authorities

'float'
is
of

un¬

collected

items

pansion

t

X
-7

avail¬

ability

are

total

tax

items

i

well

in

or

liabilities

o

Dr.

Walter

Dr.

The

are

Tongass National
sustain on a perpetual

can

yield basis, the daily production of
3,000 tons of wood-dissolving pulp,
-worth

$150
for

*rayon,

staple

.is375,000
1 forest

ton, and in de¬
manufacture
of

per

mand

There is

the

fiber

now

world shortage of

a

annually.

tons
alone

plastics.

and

one

produce

could

This

up¬

wards of 900,000 tons

this

Co., 317 Montgomery Street.

annually of

pulp.

Two With Aim, Kane Co.

to

the
the

banks

extent

the

§alle Street. Mr. Brady

of

Reserve

banks

for

able

thereto

lutna project is
duce

planned
kwh.

million

140

to

with

was

Chesley & Co.^

Joins Beeken Staff

pro¬

by the 81st Congress, but it, is
only one of many power sites and
j facilities for the production of
;

,'hydroelectric
'number

of

power.

There

that

areas

are

a

/cally suited for stock raising and
many tame grasses and legumes
are

well

forage

to Alaska for
There are 4,000,000

suitable

acres

domestic
Alaska

the

for

grazing of
Although
primarily an agri¬

livestock.

is

not

BEACH,

Fla.—

Robert J. Nienberg has been added
to

the staff of William S. Beeken

Reserve

banks,
the
item
'float,' of $1,173,000,000, is the sec¬
ond largest
item of those that
comprise total Reserve bank
times

loans,
their

the

Reserve

books

MIAMI, Fla.—William N. Steele
and Alfred Valzone

with J. A.

are

Spahr,

the

had

of

purposes

would

credit

not

share

184

only about 12,000

acres

cultivation, but the amount
suitable for

crops

is esti-

to be

Alter

New

Avenue,

York.

with Ira

He

was l

lated

piated at 2,000,000 acres.

4

Minerals

first

in

Alaska
to

resource

large scale.

a

sources
of

are

be

developed

The developed

coal and gold. A totai

110 billion net tons of coal

estimated
cury,

per,

to

be

available.

antimony, tin, chromite,
and zinc deposits

seepages

exist.

to

cop¬

have been discovered
an

try in Alaska
expand

located.

can

on

way.

Portland cement and gypsum

posits have been

de¬

Indus¬

greatly

resources

and

scenery

await

only the investment of additional

capital and the application of

the age

the

Jones

^domination

hindrances, such

Act

of

over

June 28

He had headed

Company with offices

Davis

has

Colo.
joined

time
a

as

1920, and the
labor by Seattle




for

consequence,

staff

of

credited

much

BATTERIES,
and

and

James

affiliated

L.

—rest

items
Chronicle)

BAKERSFIELD, Calif.—John L.
Kaull

Potter

with

have

or

(Special to The Financial Chronicle)

BEVERLY

HILLS,

thur

N.

Davis

is

now

with

Douglass

&

Co.,

Robertson Boulevard.

Calif.—Ar¬
associated

133

North

and

6%

as

companies,

"Considering the
of

reserves

The

hence the

average

ratio

deposits

as

a

minimum, roughly 16%, each dol¬
lar

of

float

enables

dared

a

to

V.

McMENIMEN, President
•

:

NOTICE

share

on

a

regular

quarterly meeting at

Seventy-five Cents (75c)
a

The Board of Directors

corporated, in

dividend of

Miami, Florida

Common

on

Stock, payable August 1 to

26, 1951, declared

shareholders of record

earned

July 20, 1951,

of 25 cents

surplus

a

per

a. h. daggett

stock of the

President

payable

on

June

froim

dividend
share

the outstanding

on

capital

Corporation,
July 20, 1951,

to

stockholders of record

at

the

on

July 10, 1951. Transfer

close

of

business

books will not be closed.

LONG ISLAND LIGHTING COMPANY
Miami, Florida, June 26,1951

Notice of

R. P. Foreman

Quarterly

Secretary

Dividend

the

NOW! DOUBLED NON-STOP
The Board of Directors has declared
,

quarterly dividend of 20

deposits by slightly more than six

cents per

This dividend will not be distributed to
holdcrB of the old Preferred and Common
Stocks of the Company (or Certificates of

Deposit for said Stocks) or to holders of
the old Preferred Stocks of Queens Bor¬
ough Gas and Electric Company and Nas¬
sau &
Suffolk Lighting Company until
such shares have been surrendered and

exchanged for the

new

Common Stock.

VINCENT T. MILES

member

expand their loans and

a

share
on the Common Stock of the
Company,
payable August 1,1951 to stockholders of
record a 11he close of bu sincss J uly 20,1951.

July 5,1951

banks

July

of National Airlines, In¬

board of

Directors today de

items—

which member banks

time

on

of June 20

required to hold against their
and

record

UPSON, Chairman of Board

W.

July 5, 1951

NOTICE
St. Paul, Minnesota
Mar 31, 1951

a

floating through the mails

demand
?{'■

soon

uncollected

upon

express

are

Douglass Co. Adds

too

M.

DIVIDEND

accounts

word 'float/

James

Company, 120 Chester Ave.

reserve

M.

NATIONAL AIRLINES

Industrial Batteries

against the
As

of

20, 1951.

INC.

were

collection.

stockholders

on

dividend

Manufacturers of Automotive

large portion of the member bank
reserves—some

Two With James Ebert

as

extra

DIVIDEND

the member banks

having their

are

724 Seventeenth Street.

reserves)

required

B.

the

to The Financial

collection

for

an

Secretary

should

reserves

a

50per share

and

Sheldon F. Hall,

purpose

by shortening the time in

Walter

—

Peters, Writer & Christensen, Inc.,

(Special

sound,

vio¬

regular quarterly dividend
on
the Preferred

share
addition,

August

Portland.

(Special to The Financial Chronicle)

DENVER,

authorities

basic,

banks

shareholders of

the elose of business

re¬

availability schedules
(the periods during which checks
and drafts sent through the Re¬
serve

payable

the

GOULD-NATIONAL

were

the deferred

deferred

Ebert

American youth and energy.
After statehood has nullified cer¬

the

be real

passed

Joins Peters, Writer

ex¬

for

present

on

New York City and

This is the land of promise. This
the lone remaining pioneer field

tain

of 64.

Hammons &
in

Hammons

in Miami Beach

become

perienced business ability.

is

at

Scott

be expected to

in the next few
years.
Alaska's undeveloped for¬
ests, minerals, agricultural lands,
fish

away

oil

intensive

under

Walter

are

Numerous

(the Arctic coast and
drilling program is

are

Mer¬

lead

known

on
re¬

Reserve

a

the

©

—

that member bank

Walter Scott Hammons

the

were

at

to

a

per

In

'.r.M/.u.u

which, before the inauguration of

Federal

($.20)
upon

COMPANY,

Detroit, Michigan
July 2, 1951

Staten

Haupt & Co.

75

quarterly divi¬
the Common
of 50£
per share on Common Stock was also
declared; payable on Aug. 1, 1951 to

on

the
Federal
Reserve
System,
Island, caused much trouble in this court"previously try. But some months ago, the

CO.

10, 1951.

real, not credit resting upon
items
a
procedure

uncollected

PILE

Street, New York 6, N. Y.

Investigations • Foundations

Stock

BURROUGHS ADDING

September 10, 1951,

re¬

words, the

busi¬

Trcas.

CASH

cents

declared

actually

were

In other

of the member banks

serves

Joseph Fearon is engaging in the

twenty

been

checks and drafts, cleared through

collected.

Joseph Fear on Opens

CONSECUTIVE

has

stock <of

securities business from offices at

of land

CONCRETE
140 Cedar

dend of

204th

the

the

of

mRAYMOND

to
Au¬

Stock.

serves of member banks until the

Rayvis Company, Inc., 550 Brickell the Reserve banks,
Avenue.

there
under

1951,

record

of

Systepi," says Dr.
that the Reserve

"was

banks

country it is.believed to
capable of producing at least
80% of its own requirements for
agricultural products. At present
are

of

that date."

on

of

banks

close

Heavy Construction

$171,000,000 of
and
advances

discounts,

which

stockholders

to

the

July 18, 1951.

declared

This is almost

the

1951,
at

the

on

The Board of Directors has this day

record

"One

(Special to The Financial Chronicle)

be

o

$24,150

the

outstanding.

30,

record

Soil

Federal Reserve

Two With J. A. Rayvis

cultural

f

1,173

fifty cents
Capital
Company, payable

share

of the

1951.

Vicc-Pres. and

MACHINE

Co., Harvey Building.

adapted

crops.

PALM

physi-*

are

171

,

dividend of

the

on

con¬

?

Total (Res. Bank credit)

seven

WEST

a

L. G. CLARK, Treasurer
July 10, 1951

a

A. SCHNEIDER,

$22,806 A dividend of

Loans, Diets. & advs.__

(Special to The Financial Chronicle)

This development was authorized

a

of

DIVIDEND

4. Float

credit

year.

per

in the

NOTICES

Preferred

15,

August

1,

gust

collec¬

quoted portion of the
viously with Hornb lower &
Weelfs.
Mr. Frazier was with consolidated statement of the Fed¬

Hydroelectric power at the Ek-

.

share

per

Cumulative

stockholders

Reserve Bank Credit:

eral

*

DIVIDEND

Stock

Stock of the company, pay¬

of

was pre¬

Blunt, Ellis & Simmons and prior

Midwest

quarterly dividend

a

$1.06^4

$4.25

drafts, sent by member banks

"In

the

Stock Exchange.

(50c)

solidated statement of the Federal

Kane, Rogers & Co., 39 South La

Street, members of

The Board of Directors has de¬

declared

to

cnecks

U. S. Govt, securities-...

CHICAGO,
111.— Edmund
G.
Brady and Garent L. Frazier have
become
associated with
Aim,

Day¬

meeting held July 10, 1951,

banks

reserves

before

appears

(Special to The Financial Chronicle)

Charles M.

TECHNICOLOR, Inc.

direction
have."

The Board of Directors at

Reserve banks for June 20, 1951,
in millions of dollars, as follows:

The

enormous.

Forest

Alaska

of

resources

Chronicle)

—

now

CORPORATION

member

filiated with Francis I. du Pont &

pre¬

Gernon, 105 South La Salle

Spahr

Vice-President,

represents

the

ton &

ness

E.

ties in the United States.

to

to The Financial

bmitn is now associated with

July

which the Federal Reserve

and

was

proper

they

COLUMBIA PICTURES

Executive

added

(Special

CHICAGO, 111.

clared

Walter E.

have

He

not using

are

1

says

Spahr,

Company, 647

Joins Dayton & Gernon

and

.

iunder statehood.
f

bank

DIVIDEND NOTICES

Reserve

banks,"

California

The point is that the

f

e r a

the Fe d

First

asking for

are

member

the

the powers

H

the assets and

vorably with those of some of the
older, more seasoned municipali¬

to

of

reported in

as

'float'

yield

expansion

Reserve authorities

de¬

over

of

other credit.

cash

ferred

under

are

LOS ANGELES, Calif.—Howard
Anderson has joined the staff

additional powers to curb the ex¬

the

excess

programs

the

it¬

reveals

bank credit and while the Federal

as

which

an

expansion by members of $7,038,-

for additional

is known

enable

development

-

Chronicle)

viously with Gross, Rogers & Co.

authority, and 000,000.
"This

to The Financial

South Spring Street.

$1,173,000,000

would

15%,
tion and credit to their respective
v
(Special to The Financial Chronicle)
should
reserve
accounts, have been col¬
I SAN
easily produce a surplus over esti¬
FRANCISCO, Calif.— lected by the Reserve banks.
Harold D. Padgett has become af¬
mated appropriation requirements
"This 'float'

^Alaska's

of

liability items in Federal Reserve Bank

payment records compare very fa¬

With Francis I. du Pont

S.

Monetary Policy, advocates

whose debt ratios, tax collection of
the Economists' National Com¬
figures, financial statements and mittee on Monetary
Policy. "This

present 10 mill property tax could
ibe doubled and if Federal income
'tax

and

should be very well received by

cates

and

diversification,

for

debt,

on

statements.

mu¬

age,

of

Committee

pace.

nicipal default, and tax collections
in Juneau, for example, run about

new

-

items

It is certainly not a
dangerous place to invest money

ishing

Spahr, Executive Vice-President of the Econo¬

National

reducing the "float," which is the

unions, Alaska should expand and
develop its resources at an aston¬

and

129,794
204,354

Arizona

Dr. Walter E.

Opportunity

35

Treasurer

STAR

SERVICE

BETWEEN

NEW YORK AND MIAMI

NATIONAL
^

Airlines

36

The Commercial and Financial Chronicle

(184)

with

pares

BUSINESS BUZZ

000

last

stated
fied

on..

Thursday, July 12, 1951

..

.

deficit of $3,122,000,The Secretary

a

year.

that he

with

deeply grati¬
results, but

was

the

1951

pointed out that the Federal Gov¬
ernment is faced with the

>

from the Nation's

gj "Vg\"Wf

xM.ll/U

Capital

prospect
a
budget deficit of approxi¬
mately $10 billion in the year
which
is just
beginning, unless
appropriate new taxes are en¬

of

A

BeTund-the-Scene Interpretations

JL CwiMf

acted

Despite hostile comments last
by members of the Senate
Finance committee about the idea,

of that committee
opposed to a general
Federal manufacturers' excise tax.
Furthermore, they now have come
to an informal meeting of minds
that such a tax will be given the

ment

will not escape

if the tax stays it

-

week

members

the

and "cheap
prime sales argu¬
of these pure-hearted boys.

getting

nicked,

power"

is

too,

serious consid¬

most

committee's

eration in 1952.

*

*

*

were

fiscal years 1951 and 1950 is shown

facturers, at the tax

came

when
Manu¬

hearings last
the idea.

proposed

again

week,

attitude is a two

The committee's

place, their present

In the first

below

will
be able to get enough materials to
meet the specific production
mobile

industry

For

Receipts
Expenditures

cussions

The

the first 5 pages of a
is

of

one

report from

in

freshest

the

what

assuming that Mr. Truman

brings forth the customary re¬
curring annual demand for more
money to spend. Such a sales tax
could easily fill the bill of all the
revenue the committee would
be
disposed to raise in 1952, and the
committee has no doubts that Mr.

election year or other¬
wise, will again put the Admin¬
istration's
hand
out
stretched,

Truman,

palm upward.
This is the present informal in¬
members

of

the

com¬

mittee, however. It must not be
as even a moderately sure

■taken

mittee

is

that

recalled

the

Finance committee is like a gen¬

of

part of the "Pro¬

Standing

the

Finance

on

Com¬

the Expen-.

on

being

ditures and Estimates," etc.,

ably

The

welfare

tributing

is

state

inflation,

to

Treasury.
this

is noted

connection, it

that the members of the commit¬
tee

couple

a

of

ago

years

were

privately toying with the idea of
a
sweeping Federal transactions

tax,
nick
the
on

sales tax that would
sale of any article in

super

a

every

U.

S.

Joint

The

Internal Revenue
hatch

to

the

Committee

was

creature

directed

for

later

public showing. This was supposed
to
be the
goblin that would
frighten Truman & Co. out of the
implications of always upward

"

spending.
But
never

the

the

■

accumulation

port

of

dares

even

hatched,

tax

tax

even as a

was

the demand for bigger and

social

security

edifice

upon

us,

possibly carry."

-

&

Senate
neat

*

conservatives

found

a

to dispose of the FEPC

way

k

;

no

There

is

ardent foe of FEPC than

more

the

Democratic

nomination

and

this, .enacted in 1952, is some¬
thing to help hoist him back to
Missouri.
■

research

which

By

one

binations

.

*

*

,

of those
of

++.■+

delicious

circumstances,

com¬

the

organization,

remain

must

costs

military

that

was

in¬

the

"Chronicle's"

own

$100 million.

'

"

have

*

*

housing

billion

$35

billion

had

$7

been lost

be¬

of inflation.

cause

was

20%

or

appro¬

year,

one

of

This argument
Administration's

the

"horrible

examples"- of the

need for price control.

This study

ing

in

the

on

8-month

the

to

showed, first, noth¬
of overall evi¬

furnished

inflationary

to

costs

Congress
amounting

it could be

as

of
to

ascer¬

tained, ordnance equipment went
up about 1Q%, the amount of in¬
creased wages. Food went up some

13.3%

between

March

July 1, 1950, and
1951. Petroleum prod¬
up, but primarily be¬

31,

went

of

cause

marginal
gasoline.

premium payments to
producers for aviation
An

Force

costs, in many cases.
appropriations for the Air

contain

tentatively applied

costs

the tax to

the utilities blessed with
ownership and public

of

no

additional

higher

costs,

some

public

for

House

money, which would have yielded
some $16 million. Later
the House
took the tax off both.
The

utterly
upright and criticism-free public
power
lobby has become the
greatest opponent of a tax
on

electric energy—because it
knows




having

tended

al¬

total

to

The

earlier

House

in

In

tacking

theory

fiscal

higher unit costs
volume production.

because

Among

the

appropriations
was

one

due

for

investment

and

increased

$2,297,Vv

head

1952

deficit of $10 billion, unless

move.

the

taxes

added.

are

the

Debt reduced

House

the

other

hand, if

upon

regular

fouling

of

up

DPA,

and

e

t

n

as

allowed

to

run

in

1952

at

a

rate

are

that

111.— William

C.

lingiaw, Bolger & Co., 120 South
Salle Street.
He was previ¬

La

ously with Bache & Co.

CLASS B (common)

Expenditures

A

amounted to

In

$44,633,000,000,

Analysis of

STOCK

California.

as

pared

com-

a

with

000 in f i

s c a

leading

1

producer of cement

fast-growing

Southern

,: +
this Company and!

review of the Cement

available

try

amounting to $3,510,000,000,

doubts

(Special to The Financial Chronicle)

CHICAGO,

RIVERSIDE CEMENT CO.

injthe

ules.

the

With Shiilingiaw Bolger

WE SUGGEST

$40,167,000,-

all

Ex¬

changes.

com¬

equivalent to 80% of 1950. This
may be Wilson's present intention.
But there are too many imponder¬
ables to make this something you
can
yet plan. on in making up
production and financing sched¬
Not

New

Stock

For

with
$37,045,000,-

and

specifically housing, will be

Midwest

Large Appreciation Potential

previous' year.

are

Jackson

pared

Incidentally, few people here
taking too seriously the fore¬
cast made by Defense Mobilizer
Wilson that construction overall,
^

and

Rice

members of the

and

T

$48,143,000,-

000

-'

I

m

n

000,

F.

West

Budget receipts of the Gov-

amounted to

procedure, it could lead to a little
more -

r

Daniel

141

Flynn has joined the staff of Shii¬

Secretary of the Treasury Sny¬
on
July 2 announced the
budget results for the fiscal year
e

may

insists

On

out.

work

This

York

new

than $2 billion.

more

defense

DPA.

to

amendment

with

is

Company,

on

Selling about

Indus-

request.

:

,

<

$13.75

1950.

The

budget
surplus for
t h

e

John W. Snyder

y e a r,

..

,

com-

LERNER & CO.
Investment

10 Post Office
•

Securities

•;

V

Square, Boston 9, Mass.

Tel. HUbbard 2-1990

Allied Electric
FIRM TRADING MARKETS

FOREIGN

*

SECURITIES

Products
Prospectus

on

request

CARL MARKS A (-.0. INC.
FOREIGN SECURITIES SPECIALISTS

to

liberalizing travel regulations for
certain military personnel.
Actually, press reports may
given only part of General
Marshall's statement. He told a
have

funds

were

year.

foresees

previous

Treasury

they

defeated

com¬

with deficit of $3,122 mil¬

counter

"increased costs"

trust

accounts

Signal

average

production
Actual

ment

CHICAGO, 111.—Omer E. Rabi-

lion

Defense

Act

extension,
thought they pulled a smart

delay.

way

Non-

increased

$12,955,000,000, including the ef¬
of this special exchange of¬
Special issues to Govern¬

deau

pares

1951.

of

bonds.
was

fect

Boulevard,

Surplus of $3,510 million

pro¬

tacked the defense housing

gram

bill

defense

ference, and forces the House to
consider it on conference as an

that

debt

With Daniel F. Rice

For 195! Fiscal Year

*

When the friends of the Admin¬

istration's

anonymous,

priated for defense last

series

2%%

(Special to The Financial Chronicle)

Budget Operations

$650 million.

integrity is unques¬
to find backing for

tion

investment

|Snyder Reports on

to counter cost rises
totaled, not $7 billion, but

year

General Marshall's reported asser¬

tioned, tried

like

a

000,000 during the yetfr.

der

whose

for

creased

housing onto DPA and passing it
a second time brings it into con¬

but

lowance

,

re¬

views.)

privately owned electric utility Service increase of 38.5% in "cost"
Industry will be relieved in the was a "rise" between an engi¬
final tax bill (as in the House
neering cost estimate of articles
bill), of collecting taxes on the not in production and their actual
consumption of electricity. The tax
on the output of
privately owned
utilities amounts to upwards of

at

and may or may not coincide with

did

Marshall

1967-72,

non-marketable

marketable

maintained

(This column is intended to

defense housing bill, has refused
so far to cohsider the Senate bill.

ucts
*

.

assume

What

Truman?

20%. As far

Harry Truman is going to get

chases."

Production

One

of

flect the "behind the scene" inter¬
fering.
pretation from the nation's Capital,

Secretary Mar¬
shall compliantly mouth official
propaganda lines to suit Harry
Defense

Does

be

quantities, etc.) the specific effect
of price increases, as such, on all
Department of Defense pur¬

this

Judiciary

Chairman.

re¬

was

will

this level. It might go higher.1

isolate

to

Actual requests for appropriations

take it for granted
that the southern Democrats
fig¬
ure

volume

virtually

"is

from other
factors (design changes, changing
impossible

subcom¬

is

dence

can

it

that

committee

Eastland

the

to

It

year.

Marketable

year.

reduced

2V2% Treasury Bonds of June and

please.'

amount

mittee of which Senator James O.

ferred

this

was

December,

"roughly" the equivalent
of the BLS wholesale price index.

legislation

If there is a general Federal
consumption tax—without a grave
war—you

Mirror Co.?—Complaint Department,

"Snitzle's

bigger

could not

June

on

$17,351,000,000,
of which $13,574,000,000 was ac¬
complished by an exchange of

re¬

days should come

economy

our

future.

near

public debt

gross

during the

debt

that

builds up^ an
expenditures

fixed

of

which "if dark

piece for

zoo.

000

potential

suggest

to

ac¬

1951, amounted to $255,222,000,000, a reduction of $2,135,000,-

con¬

savings. The

miscellaneous

of

30,

the

governmental insolvency, and the

main

'

,

transaction

The

cogently

discusses

report
the

from

obtained

be

can

and

trust

expenditures in the

Report No. 12 of the Senate Com¬
on
Finance, which prob¬

uinely stoutly virtuous lady who Senator Eastland, and the legisla¬
violently resists the sin of con¬ tion will gather a lot of dust-in
fiscatory taxes. She yields part the next couple of years, unless
way to sin under the irresistible tacked on as a rider to other legis¬
compulsion of securing some mo¬ lation on the floor.
dicum of solvency tor the Federal
:is
sj:
*
In

-3,122

$465,000,000, permitted
the Treasury to retire $2,135,000,000 of public debt during the year
and to add $1,839,000,000 to the
cash
balance
in anticipation
of
significant increases in defense

King's Printer, Ottawa.

sales tax,
the committee members believe, is

It is the first

ceedings

The time to advance a

It

+3,510

or

(—)

budget

counts

things to be printed on the» North

application of the individual
income tax, and some additional
taxation of corporation income.

prospect.

$37,045
40,167

surplus of $3,510,000,000, together with net receipts

is taking governments,

idea

State

mittee

ous

of

Year 1950

$48,143
44,633

(+)

Deficit

Welfare

the

where

of

Surp.

well-rounded dis¬

and

American continent.

tention

Fiscal

Year 1951

readable,

most

the

of

one

profound,

plans are to raise not more than
$6 billion of additional taxes, and
perhaps considerably less. This
objective, they believe, can be
achieved by a broader extension
of selective excises, a more vigor¬

in 1952,

*

Fiscal

*

*

*

(in millions):

whole

a

as

quotas allowed by NPA for July.

Canada

thing.

part

It is doubted here that the auto¬

7,;.;

comments

Hostile

the National Association of

.

Budget, while expenditures
$2,578,000,000 lower. A com¬
parison of budget results for the
uary

the

far from

are

j

as soon as possible.
Receipts were $3,631,000,000
higher than estimated in the Jan¬

SO BROAD STREET...HEW YORK 4; N. Y.
TH. HANOVER 2 0050...TELETYPE: NY 1-97!

Kill,Thompsons Co.,Inc.
Trading

Department

70 WALL STREET, N. Y. S
T.I. WHitehal! 4-4540